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Ariel holds a $10,000 portfolio that consists of four stocks. Her investment in each stock, as well as each stocks beta, is listed in the

Ariel holds a $10,000 portfolio that consists of four stocks. Her investment in each stock, as well as each stocks beta, is listed in the following table: Stock Investment Beta Standard Deviation Omni Consumer Products Co. (OCP) $3,500 0.80 9.00% Tobotics Inc. (TI) $2,000 1.70 11.00% Water and Power Co. (WPC) $1,500 1.10 16.00% Makissi Corp. (MC) $3,000 0.30 25.50% Suppose all stocks in Ariels portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Makissi Corp. Water and Power Co. Omni Consumer Products Co. Tobotics Inc. Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? Water and Power Co. Omni Consumer Products Co. Tobotics Inc. Makissi Corp. If the risk-free rate is 7% and the market risk premium is 8.5%, what is Ariels portfolios beta and required return? Fill in the following table: Beta Required Return Ariels portfolio

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