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Elle holds a $7,500 portfolio that consists of four stocks. Her investment in each stock, as well as each stocks beta, is listed in the
Elle holds a $7,500 portfolio that consists of four stocks. Her investment in each stock, as well as each stocks beta, is listed in the following table: Stock Investment Beta Standard Deviation Perpetualcold Refrigeration Co. (PRC) $2,625 0.80 15.00% Zaxatti Enterprises (ZE) $1,500 1.50 11.50% Three Waters Co. (TWC) $1,125 1.15 16.00% Mainway Toys Co. (MTC) $2,250 0.50 22.50% Suppose all stocks in Elles portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio?
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