Ariel holds a $7,500 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
Perpetualcold Refrigeration Co. (PRC)	$2,625	0.80	18.00%
Zaxatti Enterprises (ZE)	$1,500	1.30	11.50%
Water and Power Co. (WPC)	$1,125	1.15	16.00%
Mainway Toys Co. (MTC)	$2,250	0.60	19.50%

1. Suppose all stocks in Ariels portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio?

A. Zaxatti Enterprises

B. Perpetualcold Refrigeration Co.

C. Mainway Toys Co.

D. Water and Power Co.

2. Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk?

A. Zaxatti Enterprises

B. Mainway Toys Co.

C. Perpetualcold Refrigeration Co.

D. Water and Power Co.

3. 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	(0.7586, 1.3387, 0.8925, 0.5980)	(1,809.16%, 1,138.02%, 925.25%, 14.59%)