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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
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 Andalusian Limited (AL) Tobotics Inc. (TI) Water and Power Co. (WPC) Mainway Toys Co. (MTC) Investment $3,500 $2,000 $1,500 $3,000 Beta 0.90 1.50 1.10 0.50 Standard Deviation 15.00% 11 .00% 18.00% 22.50% Suppose all stocks in Cheyenne'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? O Andalusian Limited O Mainway Toys Co O Water and Power Co O Water and Power Co O Tobotics Inc Andalusian Limited O Mainway Toys Co Tobotics Inc. If the risk-free rate is 4% and the market risk premium is 6%, what is Cheyenne's portfolio's beta and required return? Fill in the following table: Beta Required Return Cheyenne's portfolio 1.395 13.30%
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