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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 Omni Consumer Products Co. (OCP) $1,750 0.90 18.00% Tobotics Inc. (TI) $1,000 1.30 11.00% $750 1.10 18.00% Western Gas & Electric Co. (WGC) Mainway Toys Co. (MTC) $1,500 0.60 19.50% Suppose all stocks in Elle's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? O Mainway Toys Co. O Tobotics Inc. O Western Gas & Electric Co. O Omni Consumer Products Co. Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? O Tobotics Inc. O Western Gas & Electric Co. O Mainway Toys Co. O Omni Consumer Products 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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