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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: Investment Beta $3,500 0.80 Stock Perpetualcold Refrigeration Co. (PRC) Zaxatti Enterprises (ZE) Water and Power Co. (WPC) Makissi Corp. (MC) Standard Deviation 9.00% 12.00% 16.00% $2,000 1.30 $1,500 1.20 $3,000 0.30 19.50% Suppose all stocks in Cheyenne's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? O Makissi Corp. O Zaxatti Enterprises O Perpetualcold Refrigeration 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? Water and Power Co. O Makissi Corp. O Zaxatti Enterprises O Perpetualcold Refrigeration 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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