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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: 0 Stock Perpetualcold Refrigeration Co. (PRC) Tobotics Inc. (TI) Western Gas & Electric Co. (WGC) Flitcom Corp. (FC) Investment Beta Standard Deviation $2,625 0.80 12.00% $1,500 1.30 11.50% $1,125 1.15 16.00% $2,250 0.40 19.50% Suppose all stocks in Elle's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Western Gas & Electric Co. Flitcom Corp. Perpetualcold Refrigeration Co. Tobotics Inc. Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? Western Gas & Electric Co. Perpetualcold Refrigeration Co. Tobotics Inc. Flltcom Corp. 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

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