Ch 08: Assignment - Risk and Rates of Return Cheyenne 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) Three Waters Co. (TWC) Makins Corp. (MC) Investment $3,500 $2,000 $1,500 $3,000 Beta 0.80 1.90 1.15 0.30 Standard Deviation 9.00% 11.50% 16.00 28.50% ted Suppose all stocks in Cheyenne's portfolio were equally weighted. Which of these stocks would contribute the least market rink to the portfolio Mail Corp Omni Consumer Products Three Waters Co. Kutatsu Motor Co. Dell wocks in the portfolio were ually weighted. Which of these stocks would have the least amount of stand-alone risk O Miss Corp Gunu Motor CO Suppose all stocks in Cheyenne's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio Makies Corp. Omni Consumer Products Co. Three Waters Co. Kultu Motors Co. 27- nited Support stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? Makii Corp Kultu Motor Co Three Waters Co On consumer Products Co. trerate and the mannenkomum Cheyenne Dorotard required returns in the following tabi 20 DDD ARE 2 U Ch 08: Assignment - Risk and Rates of Return Suppose all stocks in Cheyenne's portfolio were equally weighted. Which of these stocks would contribute the least market nsk to the portfolio? Makissi Corp. Omni Consumer Products Co. Three Waters Co. Kuiatsu Motors Co. Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? Makis Corp, ed Kulatsu Motors Co. Three Waters Co. Omni Consumer Products Co. of the most free rate is 7" and the market risk premium is 3.5, what is Cheyenne's portfolios beta and required return rat in the following table Beta Required Return Cheyenne's portfolio Grade It Now Save & Continue One without having 20 000 000 4 II 13 17 FO FIG 12 A * # 3 $ 4 % 5 & 7 2 6 8 8 9 1 0 Ch 08: Assignment - Risk and Rates of Return Suppose all stocks in Cheyenne's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Makiss Corp. Omni Consumer Products Co. Three Waters Co. Kulatsu Motor Co. Suppose all stacks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk Makissi Corp Kulatsu Motor Co. LEE 7 imited bed Three Waters Co. Omni Consumer 0.9225 CO 0.6183 11 the risk free rate is pret rok premium is 8.5 What is Chuyenne's portfoto's beta and required return in the following table 1.330 0.7841 Required Return Cheyenne's portfolo Grade It Now Save a Continue Continue without saving 90 2 CRO bote Fa 18 FO FW 2 2 3 $ 4 % 5 A 6 & 7 * C 8 9 0 W E R T T Y U I 0 P 08: Assignment - Risk and Rates of Return Suppose all stocks in Cheyenne's portfolio were equally weighted. Wnich of these stocks would contribute the least market risk to the portfolio? Makissi Corp. Omni Consumer Products Co. Three Waters Co. Kulatsu Motors Co. Support all stock in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? Massi Corp Kutatsu Motors Co. Three Waters Co. Omni Consumer Products Co. 1,157.52 If the risk-free rates and the market 8.5%, what is Cheyenne's portfolio's beta and required return? in the following table: 1,040.16% 1.706.60 Beta un Cheyenne's portfolio Grade It Now Save & Continue Continue without saving 20 000 ODO F FS F8 F7 FB F10 $ $ % A & *
