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4. Portfolio risk and return Cheyenne holds a $5,000 portfolio that consists of four stocks. Her investment in each stock, as well as each stock's
4. Portfolio risk and return Cheyenne holds a $5,000 portfolio that consists of four stocks. Her investment in each stock, as well as each stock's beta, is listed in the following table: Stock Investment $1,750 $1,000 $750 $1,500 Andalusian Limited (AL) Tobotics Inc. (TI) Water and Power Co. (WPC) Makissi Corp. (MC) Beta 1.00 1.70 1.20 0.40 Standard Deviation 12.00% 12.00% 20.00% 25.50% Suppose all stocks in Cheyenne's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? O Andalusian Limited O Water and Power Co. Makissi Corp. O Tobotics Inc. Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? 0 Andalusian Limited o Water and Power Co. O Tobotics Inc. O Makissi Corp. If the risk-free rate is 4% and the market risk premium is 5.5%, what is Cheyenne's portfolio's beta and required return? Fill in the following table: Beta Required Return Cheyenne's portfolio
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