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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 stock's

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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 stock's beta, is listed in the following table: Stock Investment Beta Standard Deviation Omni Consumer Products Co. (OCP) $1,750 0.80 9.00% Kulatsu Motors Co. (KMC) $1,000 1.90 11.50 % Western Gas & Electric Co. (WGC) $750 1.15 16.00% Mainway Toys Co. (MTC) $1,500 0.30 28.50% Suppose all stocks in Elle's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Mainway Toys Co. Omni Consumer Products Co. Kulatsu Motors Co. Western Gas & Electric Co. Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? Omni Consumer Products Co. Kulatsu Motors Co. Mainway Toys Co. Western Gas & Electric 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 Mainway Tows.Co 0.7841 Western tric Co. 1.3838 If the risk-free rate the market risk premium is 5.5%, what is Elle's portfolio's beta and required return? Fill in the following table: 0.6181 0.9225 Required Return Elie's portfolio Western Gas & Electric Co If the risk-free rate is 4% and the ma Beta Elle's portfolio 581.00% 707.46% 1,043.05% 9.07% um is 5.5%, what is Elle's portfolio's beta and required return? Fill in the following table: arn

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