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Conceptualquestions on portfolio and stand - alone risk Manuel holds a $ 5 , 0 0 0 portfolio that consists of four stocks. His investment
Conceptualquestions on portfolio and standalone risk
Manuel holds a $ portfolio that consists of four stocks. His investment in each stock, as well as each stock's beta, is listed in the following table:
Suppose all stocks in Manuel's portfolio were equally weighted. The stock that would contribute the least systematic risk to the portfolio
is
Further, if all of the stocks in the portfolio were equally weighted, the stock that would have the
least amount of unsystematic risk is
If the riskfree rate is and the market risk premium is then Manuel's portfolio will exhibit a beta of
and a required return of
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