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 table: Stock Investment Beta Standard Deviation Andalusian Limited (AL) Tobotics Inc. (TI) $1,750 0.90 12.00% $1,000 1.30 12.00% Water and Power Co. (WPC) Makissi Corp. (MC) $750 1.20 18.00% $1,500 0.40 19.50% Suppose all stocks in Emma's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Makissi Corp. Tobotics Inc. Andalusian Limited Water and Power Co. Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? Water and Power Co. Tobotics Inc. Makissi Corp. Andalusian Limited 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