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8. Portfolio risk and return Ariel holds a $5,000 portfolio that consists of four stocks. Her investment in each stock, as well as each stock's
8. Portfolio risk and return Ariel 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: Suppose all stocks in Ariel's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Mainway Toys Co. Three Waters 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? Mainway Toys Co. Tobotics Inc. Omni Consumer Products Co. Three Waters 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: Omni Consumer Products Co. Three Waters Co. If the risk-free rate is 7% and the ma
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