7. Conceptualquestions on portfolio and stand-alone risk Bob holds a $7,500 portfolio that consists of four stocks. His investment in each stock, as well as each stock's beta, is listed in the following table: Stock Perpetualcold Refrigeration Co. (PRC) Kulatsu Motors Co. (KMC) Three Waters Co. (TWC) Makissi Corp. (MC) Investment Betal Standard Deviation $2,625 0.90 $1,500 1.90 $1,125 1.10 $2,250 0.30 9.00% 11.00% 18.00% 28.50% Suppose all stocks in Bob's portfolio were equally weighted. The stock that would contribute the least systematic risk to the portfolio is Further, if all of the stocks in the portfolio were equally weighted, the stock that would have the least amount of unsystematic risk is . If the risk-free rate is 5.00% and the market risk premium is 7.50%, then Bob's portfolio will exhibit a beta of and a required return of

7. Conceptualquestions on portfolio and stand-alone risk Bob holds a $7,500 portfolio that consists of four stocks. His investment in each stock, as well as each stock's beta, is listed in the following table: Suppose all stocks in Bob's portfolio were equally weighted. The stock that would contribute the least systematic risk to the portfolio is . Further, if all of the stocks in the portfolio were equally weighted, the stock that would have the least amount of unsystematic risk is If the risk-free rate is 5.00% and the market risk premium is 7.50%, then Bob's portfolio will exhibit a beta of and a required return of