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Cheyenne holds a $7,500 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 $7,500 portfolio that consists of four stocks. Her investment in each stock, as well as each stock's beta, is listed in the following table: Beta Standard Deviation 9.00% 0.90 Stock Perpetualcold Refrigeration Co. (PRC) Kulatsu Motors Co. (KMC) Three Waters Co. (TWC) Flitcom Corp. (FC) Investment $2,625 $1,500 $1,125 1.50 11.50% 1.15 18.00% $2,250 0.30 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? Flitcom Corp. Three Waters Co. Perpetualcold Refrigeration Co. Kulatsu Motors Co. Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? Kulatsu Motors Co. Flitcom Corp. Perpetualcold Refrigeration Co. Three Waters Co. If the risk-free rate is 4% and the market risk premium is 5.5%, 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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