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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 stocks

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 stocks beta, is listed in the following table: Stock Investment Beta Standard Deviation Perpetualcold Refrigeration Co. (PRC) $1,750 1.00 18.00% Tobotics Inc. (TI) $1,000 1.90 12.00% Western Gas & Electric Co. (WGC) $750 1.20 20.00% Flitcom Corp. (FC) $1,500 0.60 28.50% Suppose all stocks in Elles portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Perpetualcold Refrigeration Co. Tobotics Inc. Western Gas & Electric 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? Flitcom Corp. Tobotics Inc. Perpetualcold Refrigeration Co. Western Gas & Electric Co. If the risk-free rate is 7% and the market risk premium is 8.5%, what is Elles portfolios beta and required return? Fill in the following table: Beta Required Return Elles portfolion

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