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Emma holds a $ 1 0 , 0 0 0 portfolio that consists of four stocks. Her investment in each stock, as well as each

Emma holds a $10,000 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
Andalusian Limited (AL) $3,5001.0012.00%
Tobotics Inc. (TI) $2,0001.9011.50%
Three Waters Co.(TWC) $1,5001.1520.00%
Flitcom Corp. (FC) $3,0000.4028.50%
Suppose all stocks in Emmas portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio?
Tobotics Inc.
Andalusian Limited
Flitcom Corp.
Three Waters Co.
Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk?
Three Waters Co.
Flitcom Corp.
Andalusian Limited
Tobotics Inc.
If the risk-free rate is 4% and the market risk premium is 5.5%, what is Emmas portfolios beta and required return? Fill in the following table:
Beta ?
Required Return ?
Emmas portfolio

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