Ch 08- Assignment-Risk and Rates of Return 8. Portfolio risk and return 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 Investment Beta Standard Deviation Omni Consumer Products Co. (OCP) $2,625 0.80 12.00% Zaxatti Enterprises (ZE) $1,500 1.90 11.50% Water and Power Co. (WPC) $1,125 1.15 16.00% Flitcom Corp. (FC) $2.250 0.40 28.50% Suppose all stocks in Elle's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Flitcom Corp. Zaxatti Enterprises O Omni Consumer Products Co. Water and Power Co. Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? Zaxatti Enterprises O Water and Power Co. Flitcom Corp. Omni Consumer Products Co. If the risk-free rate is 4% and the market risk premium is 5.5%, what is Elle's portfolio's beta and required return? Fill in the following table: Beta Required Return Elle's portfolio Search P