9. Conceptual questions on portfolio and stand-alone risk

Janet holds a $7,500 portfolio that consists of four stocks. Her investment in each stock, as well as each stocks beta, is listed in the following table:

Stock	Investment	Beta	Standard Deviation
Omni Consumer Products Co. (OCP)	$2,625	0.90	9.00%
Zaxatti Enterprises (ZE)	$1,500	1.90	11.00%
Western Gas & Electric Co. (WGC)	$1,125	1.10	18.00%
Makissi Corp. (MC)	$2,250	0.30	28.50%

Suppose all stocks in Janets portfolio were equally weighted. The stock that would contribute the least market risk to the portfolio is (Makissi Corp., Omni Consumer Products Co., Western Gas & Electric Co., OR Zaxatti Enterprises). Further, if all of the stocks in the portfolio were equally weighted, the stock that would have the least amount of standalone risk is (Makissi Corp., Omni Consumer Products Co., Western Gas & Electric Co., OR Zaxatti Enterprises).

If the risk-free rate is 5.00% and the market risk premium is 7.50%, then Janets portfolio will exhibit a beta of (0.637, 0.808, 0.950, OR 1.425) and a required return of (7.75%, 9.46%, 12.13%, OR 17.25%).