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Attempts Keep the Highest: 4 5. Portfolio risk and return AaAa Ariel holds a $10,000 portfolio that consists of four stocks. Her investment in each
Attempts Keep the Highest: 4 5. Portfolio risk and return AaAa 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: Stock Omni Consumer Products Co. (OCP) Kulatsu Motors Co. (KMC) Water and Power Co. (WPC) Mainway Toys Co. (MTC) Investment $3,500 $2,000 $1,500 $3,000 Beta 0.90 1.70 1.10 0.50 Standard Deviation 15.00% 11.00% 18.00% 25.50% 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 Omni Consumer Products Co. O Mainway Toys Co O Kulatsu Motors Co O Mainway Toys Co O Omni Consumer Products Co. Water and Power Co. O Kulatsu Motors Co Water and Power Co. If the risk-free rate is 7% and the market risk premium is 996, 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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