Cheyenne holds a $10,000 portfolio that consists of four stocks. Her investment in each stock, as well as each stocks beta, is listed in the following table:

Stock	Investment	Beta	Standard Deviation
Andalusian Limited (AL)	$3,500	0.80	18.00%
Kulatsu Motors Co. (KMC)	$2,000	1.50	11.50%
Western Gas & Electric Co. (WGC)	$1,500	1.15	16.00%
Flitcom Corp. (FC)	$3,000	0.60	22.50%

Suppose all stocks in Cheyennes portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio?

Western Gas & Electric Co.

Flitcom Corp.

Kulatsu Motors Co.

Andalusian Limited

Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk?

Andalusian Limited

Western Gas & Electric Co.

Flitcom Corp.

Kulatsu Motors Co.

If the risk-free rate is 4% and the market risk premium is 5.5%, what is Cheyennes portfolios beta and required return? Fill in the following table:

	Beta	Required Return
Cheyennes portfolio A. 0.6248 B0.7926 C.0.9325 D. 1.3988		A.577.00% B 1,049.95% C 1,323.00% D.9.13%