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8. Portfolio risk and return Emma 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 Emma 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 0.80 9.00% Tobotics Inc. (TI) $1,500 1.90 11.00% Water and Power Co. (WPC) $1,125 1.10 16.00% Mainway Toys Co. (MTC) $2,250 0.30 28.50% Suppose all stocks in Emma's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? O Andalusian Limited O Mainway Toys Co. Tobotics Inc. 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? Mainway Toys Co. Andalusian Limited O Water and Power Co. O Tobotics Inc. If the risk-free rate is 4% and the market risk premium is 5.5%, what is Emma's portfolio's beta and required return? Fill in the following table: Beta Required Return Emma's portfolio

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