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Beta: 0.905, 0.606, 0.769, 1.358 Required Return: 17.42%, 11.82%, 18.79%, 15.15% Elle holds a $7,500 portfolio that consists of four stocks. Her investment in each
Beta: 0.905, 0.606, 0.769, 1.358
Required Return: 17.42%, 11.82%, 18.79%, 15.15%
Elle 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 Stock Andalusian Limited (AL) Zaxatti Enterprises (ZE) Water and Power Co. (WPC) Flitcom Corp. (FC) Investment $2,625 $1,500 $1,125 $2,250 Beta 0.80 1.70 1.10 0.40 Standard Deviation 12.00% 11.00% 16.00% 25.50% Suppose all stocks in Elle'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? Water and Power Co Andalusian Limited O Flitcom Corp O Zaxatti Enterprises Andalusian Limited Water and Power Co O Zaxatti Enterprises O Flitcom Corp If the risk-free rate is 7% and the market risk premium is 9%, what is Elle's portfolio's beta and required return? Fill in the following table Beta Required Return Elle's portfolio
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