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8. Portfolio risk and return Cheyenne holds a $7,500 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 Cheyenne holds a $7,500 portfolio that consists of four stocks. Her investment in each stock, as well as each stock's beta, is listed in the following table: Beta Investment $2,625 Standard Deviation 18.00% 0.90 Stock Perpetualcold Refrigeration Co. (PRC) Kulatsu Motors Co. (KMC) Western Gas & Electric Co. (WGC) Makissi Corp. (MC) $1,500 1.70 11.00% $1,125 1.10 18.00% $2,250 0.60 25.50% Suppose all stocks in Cheyenne's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? O Western Gas & Electric Co. O Makissi Corp. O kulatsu Motors 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? Perpetualcold Refrigeration Co. O kulatsu Motors Co. O Western Gas & Electric Co. O Makissi Corp. If the risk-free rate is 4% and the market risk premium is 5.5%, what is Cheyenne's portfolio's beta and required return? Fill in the following table: Beta Required Return 9.50% Cheyenne's portfolio 1.0000

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