8. Portfolio risk and return Elle 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: 0.80 Stock Perpetualcold Refrigeration Co. (PRC) Kulatsu Motors Co. (KMC) Water and Power Co. (WPC) Flitcom Corp. (FC) Investment Beta Standard Deviation $1,750 18.00% $1,000 1.70 12.00% $750 1.20 16.00% $1,500 0.60 25.50% Suppose all stocks in Elle's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Perpetualcold Refrigeration Co. Water and Power Co. Okulatsu Motors Co. Flitcom Corp. Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? w Perpetualcold Refrigeration Co. O Flitcom Corp. Kulatsu Motors Co. Water and Power Co. If the risk-free rate is 4% and the market risk premium is 5.5%, what is Elle's portfolio's beta and required return? Fill in the following table: Beta Required Return Elle's portfolio