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Attempts: 1505 Keep the Highest 15/2 9. Conceptual questions on portfolio and stand-alone risk Yvette holds a $10,000 portfolio that consists of four stocks. Her

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Attempts: 1505 Keep the Highest 15/2 9. Conceptual questions on portfolio and stand-alone risk Yvette 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: Investment $3,500 $2,000 Beta 0.90 1.70 Standard Deviation 15.00% 12.00% Stock Perpetualcold Refrigeration Co. (PRC) Zaxatti Enterprises (2E) Three Waters Co. (TWC) Makissi Corp. (MC) $1,500 $3,000 1.20 0.50 10.00% 25.50% Suppose all stocks in Yvette's portfolio were equally weighted. The stock that would contribute the least market risk to the portfolio is . Further if all of the stocks in the portfolio were equally weighted, the stock that would have the least amour standalone riski_ If the risk-free rate is 6.00% and the market risk premium is 8.50%, then Yvette's portfolio will exhibit a beta of and a required return of Stock Perpetualcold Refrigeration Co. (PRC) Zaxatti Enterprises Investment Beta $3,500 0.90 $2.000 1.70 Standard Deviation 15.00% 12.00% Makissi Corp. $1,500 $3,000 1.20 0.50 18.00% 25.50% Perpetualcold Refrigeration Co. Three Waters Co. Zaxatti Enterprises Folio were equally weighted. The stock that would contribute the least market risk to the portfolio is 7 . Further, if all of the stocks in the portfolio were equally weighted, the stock that would have the least amounlay standalone risk is __ ory 8.59% stocks in Wette's portfolio were equally weighted. The stock that would contribute the least market risk to the portfolio is 14.37% Further, if all of the stocks in the portfolio were equally weighted, the stock that would have the 16.53% Int of standalone risk is 20.41% and a required return of ree rate is 6.00% and the market risk premium is 8.50%, then Yvette's portfolio will exhibit a beta of

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