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5. Portfolio risk and returnn Aa Aa Emma holds a $10,000 portfolio that consists of four stocks. Her investment in each stock, as well as
5. Portfolio risk and returnn Aa Aa Emma holds a $10,000 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 Omni Consumer Products Co. (OCP) Zaxatti Enterprises (ZE) Water and Power Co. (WPC) Flitcom Corp. (FC) Investment $3,500 $2,000 $1,500 $3,000 Beta 0.80 1.50 1.10 0.30 Standard Deviation 9.00% 11.00% 16.00% 22.50% Suppose all stocks in Emma's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Suppose all stocks in the portfolio were equally weighted Which of these stocks would have the least amount of standalone risk? O Flitcom Corp O Water and Power Co O Zaxatti Enterprises O Water and Power Co O Flitcom Corp Omni Consumer Products Co O Zaxatti Enterprises Omni Consumer Products Co If the risk-free rate is 7% and the market risk premium is 9%, what is Emma's portfolio's beta and required return? Fill in the following table Beta Required Return Emma's portfolio
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