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Chapter 8 Assignment 3. Portfolio risk and return Ariel holds a $10,000 portfolio that consists of four stocks. Her investment in each stock, as well

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Chapter 8 Assignment 3. Portfolio risk and return 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) Tobotics Inc. (TT) Western Gas & Electric Co. (WGC) Makiss Corp. (MC) Investment $3,500 $2,000 $1,500 $3,000 Beta Standard Deviation 0.90 9.00% 1.50 11.00% 18.00 0.30 22.50% 1.10 Suppose all stocks in Ariel's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Western Gas & Electric Co. Omni Consumer Products Co. Makissl Corp. Tobotics Inc. Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alohe risk? Makissi Corp. Western Gas & Electric Co. Tobotics Inc. Omni Consumer Products Co. If the risk-free rate is 4% and the market risk premium is 5.5%, what is Ariel's portfolio's beta and required return? Fill in the following table: Makissi Corp. Western Gas & Electric Co. Tobotics Inc Omni Consumer Products Co. If the risk-free rate is 4% and the market risk premium is 5.5%, what is Ariel's portfolio's beta and required return? Fill in the following table: Beta Required Return Ariel's portfolio Grade It Now Save & Continue Continue without saving

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