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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: Beta 0.90 Stock Perpetualcold Refrigeration Co. (PRC) Tobotics Inc. (TI) Water and Power Co. (WPC) Mainway Toys Co. (MTC) Investment $1,750 $1,000 $750 $1,500 1.30 Standard Deviation 9.00% 11.00% 18.00% 19.50% 1.10 0.30 Suppose all stocks in Cheyenne's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Tobotics Inc. Water and Power Co. Mainway Toys Co. Perpetualcold Refrigeration Co. Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of standalone risk? Mainway Toys Co. Tobotics Inc. Perpetualcold Refrigeration Co. Water and Power Co. If the risk-free rate is 7% and the market risk premium is 9%, 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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