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Elle 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
Elle 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 0.90 Stock Perpetualcold Refrigeration Co. (PRC) Kulatsu Motors Co. (KMC) Water and Power Co. (WPC) Makissi Corp. (MC) $2,000 1.50 Standard Deviation 15.00% 12.00% 18.00% 22.50% 1.20 $1,500 $3,000 0.50 If the risk-free rate is 7% and the market risk premium is 8.5%, what is Elle's portfolio's beta and required return? Fill in the following table: Beta Required Return Elle's portfolio
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