8. Portfolio risk and return Emma 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 O O Stock Investment Beta Standard Deviation Perpetualcold Refrigeration Co. (PRC) $1,750 0.80 18.00% Zaxatti Enterprises (ZE) $1,000 1.50 12.00% Water and Power Co. (WPC) Makissi Corp. (MC) $750 $1,500 1.20 0.60 16.00% 22.50% Suppose all stocks in Emma's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Water and Power Co. Perpetualcold Refrigeration Co. Makissi Corp. Zaxatti Enterprises Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? Zaxatti Enterprises Perpetualcold Refrigeration Co. Water and Power Co. Makissi Corp. If the risk-free rate is 7% and the market risk premium is 8.5%, what is Emma's portfolio's beta and required return? Fill in the following table: Beta Required Return Emma's portfolio