8. Portfolio risk and retum Emma holds a $5,000 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 Andalusian Limited (AL) Kulatsu Motors Co. (KMC) Three Waters Co. (TWC) Makissi Corp. (MC) Investment Beta Standard Deviation $1,750 1.00 18.00% $1,000 1.90 11.50% $750 1.15 20.00% $1,500 0.60 28.50% Suppose all stacks in Emma's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Andalusian Limited Makissi Corp. Three Waters Co. Kulatsu Motors Co. Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? Andalusian Limited Three Waters Co. Makissi Corp. Kit Motors If the risk-free rate is 7% and the market risk premium is 8.5%, what is Emma's portfolio's beta and required return? Fill in the following table: Beta Required Return Emma's portfolio