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6. Portfolio risk and return Ariel holds a $10,000 portfolio that consists of four stocks. Her investment in each stock, as well as each stock's

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6. Portfolio risk and return Ariel 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 Investment Beta Standard Deviation Omni Consumer Products Co. (OCP) $3,500 0.80 18.00% $2,000 1.70 12.00% Kulatsu Motors Co. (KMC) Water and Power Co. (WPC) Flitcom Corp. (FC) $1,500 1.20 16.00% $3,000 0.60 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? Okulatsu Motors Co. O Water and Power Co. O Flitcom Corp. O Omni Consumer Products Co. 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 Omni Consumer Products Co. O Flitcom Corp. Okulatsu Motors Co. If the risk-free rate is 7% and the market risk premium is 8.5%, what is Ariel's portfolio's beta and required return? Fill in the following table: Beta Required Return Ariel's portfolio

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