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9. Conceptualquestions on portfolio and stand-alone risk Gilberto holds a $10,000 portfolio that consists of four stocks. His investment in each stock, as well as
9. Conceptualquestions on portfolio and stand-alone risk Gilberto holds a $10,000 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 Standard Deviation Andalusian Limited (AL) $3,500 1.00 12.00% $2,000 1.30 11.00% Kulatsu Motors Co. Kulatsu Motors Co(KMC) Andalusian Umited (TWC) (MTC) $1,500 $3,000 1.10- 20.00% 0.40 19.50% Mainway Toys Co. Three Waters Co. unsystematic risk is Silberto's portfolio were equally weighted. The stock that would contribute the least systematic risk to the portfolio is Further, if all of the stocks in the portfolio were equally weighted, the stock that would have the least amount of If the risk-free rate is 6.00% and the market risk premium is 8.50%, then Gilberto's portfolio will exhibit a beta of 0.895 of and a required return Gilberto holds a $10,000 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 Standard Deviation Andalusian Limited (AL) $3,500 1.00 12.00% $2,000 1.30 11.00% Kulatsu Motors Co(KMC) Three Waters Co (TWC) $1.500 1.10 20.00% Mainway Toys Andalusian Limited 00 0.40 19.50% Kulatsu Motors Co. Mainway Toys Co. Suppose all stocks in Three Waters Co. ere equally weighted. The stock that would contribute the least systematic risk to the portfolio is of the stocks in the portfolio were equally weighted, the stock that would have the least amount of unsystematic risk is Gilberto holds a $10,000 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 Standard Deviation Andalusian Limited (AL) $3,500 1.00 12.00% $2,000 1.30 11.00% Kulatsu Motors Co(KMC) Three Waters Co. (TWC) Mainway Toys Co. (MTC) $1,500 1.10 20.00% $3,000 0.40 19.50% 0.600 Suppose all stocks in Gilberto's portfolio were equally weighted. The stock that would contribute the least systema Further, if all of the stocks in the portfolio were equally weighted, the stock that would 0.895 0.761 the portfolio is least amount of unsystematic risk is 1.343 If the risk-free rate is 6.00% and the market risk premium is 8.50%, then Gilberto's portfolio will exhibit a beta of 0.895 and a required return 9. Conceptualquestions on portfolio and stand-alone risk Gilberto holds a $10,000 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 Standard Deviation Andalusian Limited (AL) $3,500 1.00 12.00% $2,000 1.30 11.00% Kulatsu Motors Co(KMC) Three Waters Co. (TWC) Mainway Toys Co. (MTC) $1,500 1.10 20.00% $3,000 0:40 19.50% 9.13% Su 10.62% ocks in Gilberto's portfolio were equally weighted. The stock that would contribute the least systematic risk to the portfolio is Further, if all of the stocks in the portfolio were equally weighted, the stock that would have the least amount of un 13.61% sk is of 19.87% rate is 6.00% and the market risk premium is 8.50%, then Gilberto's portfolio will exhibit a beta of 0.895 and a required return
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