9. Conceptual questions on portfolio and stand-alone risk Paolo holds a $5,000 portfolio that consists of four stocks. His investment in each stock, as well as each stock's beta, is listed in the following table: Investment Beta 1.00 Stock Perpetualcold Refrigeration Co. (PRC) Tobotics Inc. (TI) Western Gas & Electric Co. (WGC) Mainway Toys CO (MTC) $1,750 $1,000 $750 Standard Deviation 18.00% 12.00% 20.00% 1.90 1.20 $1,500 0.60 28.50% Suppose all stocks in Paolo's portfolio were equally weighted. The stock that would contribute the least market risk to the portfolio is Mainway Toys Co. Further, if all of the stocks in the portfolio were equally weighted, the stock that would have the least amount of standalone risk is Mainway Toys Co. If the risk-free rate is 5.00% and the market risk premium is 7.50%, then Paolo's portfolio will exhibit a beta of and a required return of 9. Conceptual questions on portfolio and stand-alone risk Paolo holds a $5,000 portfolio that consists of four stocks. His investment in each stock, as well as each stock's beta, is listed in the following table: Stock Investment Beta $1,750 1.00 Perpetualcold Refrigeration Co. (PRC) Tobotics Inc. (TI) Western Gas & Electric Co. (WGC) Standard Deviation 18.00% 12.00% 20.00% 1.90 $1,000 $750 1.20 Mainway Toys Co. (MTC) $1,500 0.60 28.509 0.730 0.927 Suppose all stocks in Paolo's portfolio were equally weighted. The stock that would contribute the least market portfolio is Mainway Toys Co. Further, if all of the stocks in the portfolio were equally weighted, the 1.090 t would have the least amount of standalone risk is Tobotics Inc 1.635 If the risk-free rate is 5.00% and the market risk premium is 7,50%, then Paolo's portfolio will exhibit a beta of and a required return of Grade it Now Save & Continue Continue without saving 9. Conceptual questions on portfolio and stand-alone risk Paolo holds a $5,000 portfolio that consists of four stocks. His investment in each stock, as well as each stock's beta, is listed in the following table: Beta Stock Perpetualcold Refrigeration Co. (PRC) Tobotics Inc. (TI) Western Gas & Electric Co. (WGC) Mairway Toys Co. (MTC) Investment $1,750 $1,000 1.00 1.90 Standard Deviation 18.00% 12.00% 1.20 $750 $1,500 20.00% 28.50% 0.60 13.18% stocks in Paolo's portfolio were equally weighted. The stock that would contribute the least market risk to the portfolio is 15.16% inway Toys Co. Further, if all of the stocks in the portfolio were equally weighted, the stock that would have the 16.34% nt of standalone risk is Tobotics Inc. 17.95% Jee rate is 5.00% and the market risk premium is 7.50%, then Paolo's portfolio will exhibit a beta of and a required return of Grade It Now Save & Continue Continue without saving
