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Elle holds a $5,000 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 $5,000 portfolio that consists of four stocks. Her investment in each stock, as well as each stock's beta, is listed in the following table: Stock Investment Beta Standard Deviation $1,750 1.00 15.00% Andalusian Limited (AL) Zaxatti Enterprises (ZE) $1,000 1.70 12.00% Three Waters Co. (TWC) $750 1.20 20.00% Makissi Corp. (MC) $1,500 0.50 25.50% Suppose all stocks in Elle's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? O Zaxatti Enterprises O Three Waters Co. Andalusian Limited O Makissi Corp. Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? O Makissi Corp. O Andalusian Limited O Zaxatti Enterprises O Three Waters Co. 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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