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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? Western Gas \& Electric Co. Tobotics Inc. Mainway Toys Co. Perpetualcold Refrigeration Co. Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? Tobotics Inc. Mainway Toys Co. Western Gas \& Electric Co. Perpetualcold Refrigeration Co. If the risk-free rate is 4% and the market risk premium is 5.5%, what is Ariel's portfolio's beta and required return? Fill in the following table: 0.6600,0.8373,1.4775,0.9850
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