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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

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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 Investment Beta Standard Deviation 9.00% $3,500 0.90 1.90 Andalusian Limited (AL) Kulatsu Motors Co. (KMC) Western Gas & Electric Co. (WGC) Mainway Toys Co. (MTC) $2,000 $1,500 12.00% 18.001% 1.20 $3,000 0.30 28.50% Suppose all stocks in Cheyenne's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Andalusian Limited Kulatsu Motors Co. Mainway Toys Co. Western Gas & Electric Co. Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? Mainway Toys Co. Andalusian Limited Kulatsu Motors Co. Western Gas & Electric Co. If the risk-free rate is 7% and the market risk premium is 8.5%, what is Cheyenne's portfolio's beta and required return? Fill in the following table: Beta Required Return Cheyenne's portfolio

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