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8. Portfolio risk and returnn Aa Aa Emma holds a $10,000 portfolio that consists of four stocks. Her investment in each stock, as well as
8. Portfolio risk and returnn Aa Aa Emma holds a $10,000 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 Perpetualcold Refrigeration Co. (PRC) Tobotics Inc. (TI) Western Gas & Electric Co. (WGC) Flitcom Corp. (FC) Investment $3,500 $2,000 $1,500 $3,000 Beta 0.90 1.70 1.10 0.40 Standard Deviation 12.00% 11.00% 18.00% 25.50% Suppose all stocks in Emma's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Suppose all stocks in the portfolio were equally weighted Which of these stocks would have the least amount of standalone risk? O Flitcom Corp O Perpetualcold Refrigeration Co O Flitcom Corp Tobotics Inc. Tobotics Inc. Western Gas & Electric Co O Perpetualcold Refrigeration Co Western Gas & Electric Co If the risk-free rate is 7% and the market risk premium is 9%, 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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