5. Portfolio risk and return Ariel holds a $7,500 portfolio that consists of four stocks. Her investment in each stock, as well as each stock's beta, is listed in the following table: Investment Beta $2,625 0.80 Stock Omni Consumer Products Co. (OCP) Tobotics Inc. (TI) Western Gas & Electric Co. (WGC) Makissi Corp. (MC) Standard Deviation 12.00% 12.00% $1,500 1.70 $1,125 1.20 16.00% $2,250 0.40 25.50% Suppose all stocks in Ariel's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Omni Consumer Products Co. Tobotics Inc. Western Gas & Electric Co. Makissi Corp. Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? Makissi Corp. Tobotics Inc. Omni Consumer Products Co. Western Gas & Electric Co. If the risk-free rate is 4% and the market risk premium is 5.5%, what is Ariel's portfolio's beta and required return? Fill in the following table: Beta Required Return Ariel's portfolio 5. Portfolio risk and return Ariel holds a $7,500 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) Tobotics Inc. (TI) Western Gas & Electric Co. (WGC) Makissi Corp. (MC) Investment $2,625 $1,500 Beta Standard Deviation 0.80 12.00% 1.70 12.00% $1,125 1.20 16.00% $2,250 0.40 25.50% Suppose all stocks in Ariel's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Omni Consumer Products Co. Tobotics Inc. Western Gas & Electric Co. Makissi Corp. Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? Makissi Corp. Tobotics Inc. Omni Consumer Products Co. Western tric Co. 0.9200 If the risk-free rate i 0.7820 the market risk premium is 5.5%, what is Ariel's portfolio's beta and required return? Fill in the following table: 0.6164 1.3800 Required Return Ariel's portfolio 5. Portfolio risk and return Ariel holds a $7,500 portfolio that consists of four stocks. Her investment in each stock, as well as each stock's beta, is listed in the following table Investment Beta $2,625 0.80 Standard Deviation 12.00% Stock Omni Consumer Products Co. (OCP) Tobotics Inc. (TI) Western Gas & Electric Co. (WGC) Makissi Corp. (MC) $1,500 1.70 12.00% $1,125 1.20 16.00% $2,250 0.40 25.50% Suppose all stocks in Ariel's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Omni Consumer Products Co. Tobotics Inc. Western Gas & Electric Co. Makissi Corp. Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? Makissi Corp. Tobotics Inc. Omni Consumer Products Co. Western Gas & Electric Co. 1,318.00% 582.00% If the risk-free rate is 4% and the mar um is 5.5%, what is Ariel's portfolio's beta and required return? Fill in the following table: 9.06% 1,041.90% Beta urn Ariel's portfolio
