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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
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: Suppose a stocks in Ariel's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Three Waters Co. Zaxatti Enterprises Makissi Corp. Perpetual cold Refrigeration Co. Suppose all stocks in the portfolio were equally weighted. Which of the these stocks would have the least amount of standalone risk? Perpetual cold Refrigeration Co. Zaxatti Enterprises Makissi Corp. Three Waters Co. If the risk-free rate is 4% and the market risk premium is 6%, what is Ariel's portfolio's beta and required return? Fill in the following table
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