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4. Portfolio risk and return Elle holds a $10,000 portfolio that consists of four stocks. Her investment in each stock, as well as each stocks

4. Portfolio risk and return

Elle holds a $10,000 portfolio that consists of four stocks. Her investment in each stock, as well as each stocks beta, is listed in the following table:

Stock

Investment

Beta

Standard Deviation

Omni Consumer Products Co. (OCP) $3,500 0.80 15.00%
Tobotics Inc. (TI) $2,000 1.90 12.00%
Three Waters Co. (TWC) $1,500 1.20 16.00%
Makissi Corp. (MC) $3,000 0.50 28.50%

If the risk-free rate is 7% and the market risk premium is 9%, what is Elles portfolios beta and required return? Fill in the following table:

Beta

Required Return

Elles portfolio

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