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9. Portfolio risk and returnn Aa Aa Elle holds a $10,000 portfolio that consists of four stocks. Her investment in each stock, as well as
9. Portfolio risk and returnn Aa Aa Elle holds a $10,000 portfolio that consists of four stocks. Her investment in each stock, as well as each stock's beta is the following: Standard Deviation 15.00% 11.50% 16.00% 19.50% Stock Perpetualcold Refrigeration Co. (PRC) Kulatsu Motors Co. (KMC) Water and Power Co. (WPC) Makissi Corp. (MC) Investment $3,500 $2,000 $1,500 $3,000 Beta 0.80 1.30 1.15 0.50 Suppose all stocks in Elle's portfolio were equally weighted. Which of these stocks would contribute the least amount of market risk to the portfolio? Suppose all stocks in the portfolio were equally weighted Which of these stocks would have the least amount of stand-alone risk? O Kulatsu Motors Co O Water and Power Co O Perpetualcold Refrigeration Co O Makissi Corp O Water and Power Co O Perpetualcold Refrigeration Co O Kulatsu Motors Co O Makissi Corp If the risk-free rate is 7% and the market risk premium is 996, what is Elle's portfolio's beta and required return? Fill in the following table. Beta Required Return Elle's portfolio 0.578 1.295 0.863 0.734
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