5. Portfolio risk and return Emma 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 Investment Beta Standard Deviation 18.00% $2,625 1.00 Andalusian Limited (AL) Zaxatti Enterprises (ZE) Water and Power Co. (WPC) $1,500 1.30 11.00% $1,125 1.10 20.00% Makissi Corp. (MC) $2,250 0.60 19.50% Suppose all stocks in Emma's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? O Zaxatti Enterprises O Water and Power Co. O Makissi Corp. O Andalusian Limited Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? O Water and Power Co. O Makissi Corp. O Andalusian Limited O Zaxatti Enterprises 1.30 11.00% Zaxatti Enterprises (ZE) Water and Power Co. (WPC) Makissi Corp. (MC) $1,500 $1,125 1.10 20.00% $2,250 0.60 19.50% Suppose all stocks in Emma's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? O Zaxatti Enterprises O Water and Power Co. O Makissi Corp. O Andalusian Limited Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? O Water and Power Co. O Makissi Corp. 0 Andalusian Limited O Zaxatti Enterprises If the risk-free rate is 4% and the market risk premium is 5.5%, what is Emma's portfolio's beta and required return? Fill in the following table: Beta Required Return Emma's portfolio