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 Andalusian Limited (AL) Kulatsu Motors Co. (KMC) Water and Power Co. (WPC) Makissi Corp. (MC) Investment Beta Standard Deviation $2,625 0.80 9.00% $1,500 1.90 11.00% $1,125 1.10 16.00% $2,250 0.30 28.50% Suppose all stocks in Ariel's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Makissi Corp. Kulatsu Motors Co. Andalusian Limited - Water and Power Co. Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? Kulatsu Motors Co. Andalusian Limited Water and Power Co. Makissi Corp. 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