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Ariel holds a $5,000 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 $5,000 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 Omni Consumer Products Co. (OCP) Zaxatti Enterprises (ZE) Western Gas & Electric Co. (WGC) Mainway Toys Co. (MTC) Investment $1,750 $1,000 $750 $1,500 Beta 0.80 1.30 1.15 0.30 Standard Deviation 9.00% 11.50% 16.00% 19.50% Suppose all stocks in Ariel's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Suppose all stocks in the portfolio were equally weighted Which of these stocks would have the least amount of standalone risk? O Western Gas & Electric Co O Omni Consumer Products Co O Mainway Toys Co O Zaxatti Enterprises Omni Consumer Products Co O Western Gas & Electric Co O Mainway Toys Co O Zaxatti Enterprises 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: Beta Required Return Ariel's portfolio
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