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5. Portfolio risk and return Aa Aa Cheyenne holds a $5,000 portfolio that consists of four stocks. Her investment in each stock, as well as

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5. Portfolio risk and return Aa Aa 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 Beta Standard Deviation Omni Consumer Products Co. (OCP) $1,750 0.80 12.00% Tobotics Inc. (TI) $1,000 1.70 11.50% Western Gas & Electric Co. (WGC) $750 1.15 16.00% Mainway Toys Co. (MTC) $1,500 0.40 25.50% Suppose all stocks in Cheyenne's portfolo were equally weighted. Which of these stocks would contribute the Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of standalone risk? least market risk to the portfollo? Western Gas & Electric Co. Omni Consumer Products Co. OMainway Toys Co. OTobotics Inc. Tobotics Inc. Omni Consumer Products Co. Mainway Toys Co. Western Gas & Electric Co. If the risk-free rate is 4 % and the market risk premium is 6 %, 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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