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8. Portfolio risk and return Elle 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 Elle 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: Stock Investment Beta Standard Deviation Andalusian Limited (AL) $2,625 1.00 12.00% $1,500 1.90 12.00% Kulatsu Motors Co. (KMC) Three Waters Co. (TWC) Makissi Corp. (MC) $1,125 1.20 20.00% $2,250 0.40 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? O Andalusian Limited O Kulatsu Motors Co. O Three Waters Co. O Makissi Corp. Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? O Kulatsu Motors Co. O Three Waters Co. O Makissi Corp. O Andalusian Limited If the risk-free rate is 7% and the market risk premium is 8.5%, what is Elle's portfolio's beta and required return? Fill in the following table: Beta Required Return Elle's portfolio

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