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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

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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 0.80 12.00% Kulatsu Motors Co. (KMC) $2,000 1.90 11.00% Water and Power Co. (WPC) $1,500 1.10 16.00% Flitcom Corp. (FC) $3,000 0.40 28.50% Suppose all stocks in Ariel's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Omni Consumer Products Co. Kulatsu Motors Co. Water and Power Co. Flitcom 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. Kulatsu Motors Co. O Flitcom Corp. Water and Power Co. If the risk-free rate is 7% and the market risk premium is 8.5%, what is Ariel's portfolio's beta and required return? Fill in the following table: Beta Required Return Ariel's portfolio 1.4175 15.03%

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