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Ariel holds a $7,500 stock portfolio that consists of 4 stocks. 8. Portfolio risk and return Ariel holds a $7,500 portfolio that consists of four

Ariel holds a $7,500 stock portfolio that consists of 4 stocks. image text in transcribed
8. Portfolio risk and return Ariel holds a $7,500 portfolio that consists of four stocks. Her Investment in each stock, as well as each stock's beta, is listed in the following table: Beta 0.80 Standard Deviation 9.00% Stock Omni Consumer Products Co. (OCP) Zaxatti Enterprises (ZE) Three Waters Co. (TWC) Mainway Toys Co. (MTC) Investment $2,625 $1,500 $1,125 $2,250 1.50 1.10 0.30 11.00% 16.00% 22.50% Suppose all stocks in Ariel's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? O Mainway Toys Co. O Three Waters Co. O Zaxatti Enterprises O Omni Consumer Products Co. Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? Three Waters Co. Zaxatti Enterprises Omni Consumer Products Co. Mainway Toys Co. Ir 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

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