ANSWER OPTIONS:

1:

0.9550

0.6399

0.8118

1.4325

2:

721.50%

1147.00%

9.25%

568.00%

Ariel 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 Investment Beta Standard Deviation Omni Consumer Products Co. (OCP) $3,500 0.90 12.00% Kulatsu Motors Co. (KMC) $2,000 1.70 12.00% $1,500 1.20 18.00% Three Waters Co. (TWC) Makissi Corp. (MC) $3,000 0.40 25.50% Suppose all stocks in Ariel's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? O kulatsu Motors Co. O Omni Consumer Products Co. O Three Waters Co. O Makissi Corp. Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? Omni Consumer Products Co. Three Waters Co. O Makissi Corp. Okulatsu Motors Co. If the risk-free rate is 4% and the market risk premium is 5.5%, what is Ariel's portfolio's beta and required return? Fill in the following table: Beta Required Return Ariel's portfolio