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8. 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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8. 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 Omni Consumer Products Co. (OCP) Tobotics Inc. (T1) Water and Power Co. (WPC) Mokissi Corp. (MC) Investment Beta Standard Deviation $3,500 1.00 18.00% $2,000 1.70 11.00% $1,500 1.10 20.00% $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? Makissi Corp Water and Power Co. Omni Consumer Products Co. Tobotics Inc. Suppose all stocks in Ariel's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Makissi Corp Water and Power Co. Omni Consumer Products Co. Tobotics Inc. Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? O Maklssi Corp. Omni Consumer Products Co. Tobotics Inc. Water and Power 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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