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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

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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 following table: Beta 0.80 Stock Andalusian Limited (AL) Zaxatti Enterprises (ZE) Water and Power Co. (WPC) Makissi Corp. (MC) Investment $1,750 $1,000 $750 $1,500 Standard Deviation 15.00% 11.50% 1.70 1.15 16.00% 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? Andalusian Limited Makissi Corp. Water and Power Co. Zaxatti Enterprises Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of standalone risk? Andalusian Limited Zaxatti Enterprises Makissi Corp. Water and Power Co. If the risk-free rate is 7% and the market risk premium is 9%, what is Elle's portfolio's beta and required return? Fill in the following table: Beta Required Return Elle's portfolio 1.415 0.943 0.632 0.802

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