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4. Portfolio risk and returnn Aa Aa Elle holds a $5,000 portfolio that consists of four stocks. Her investment in each stock, as well as
4. Portfolio risk and returnn Aa Aa Elle 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 Omni Consumer Products Co. (OCP) Kulatsu Motors Co. (KMC) Water and Power Co. (WPC) Makissi Corp. (MC) Investment $1,750 $1,000 $750 $1,500 Beta 0.90 1.50 1.10 0.50 Standard Deviation 15.00% 11.00% 18.00% 22.50% Suppose all stocks in Elle's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Suppose all stocks in the portfolio were equally weighted Which of these stocks would have the least amount of standalone risk? Kulatsu Motors Co O Makissi Corp Water and Power Co O Makissi Corp Omni Consumer Products Co Omni Consumer Products Co Water and Power Co Kulatsu Motors Co If the risk-free rate is 7% and the market risk premium is 9%, what is Elle's portfolio's beta and required return? Fill in the following table Beta Required Return Elle's portfolio 0.791 0.930 0.623 1.395 Flash Player MAC 31.0.0.122
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