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Emma holds a $ 10, 000 portfolio that consists of four stocks. Her investment in eadh stock, as well as each stock's beta, is listed
Emma holds a $ 10, 000 portfolio that consists of four stocks. Her investment in eadh stock, as well as each stock's beta, is listed in the following table: stock Investment standard Deviation Beta $3,500 Perpetualcold Refrigeration Co. (PRC) 0.80 9.00% 11.00 % Tobotics Inc. (TI) $2,000 1.30 Water and Power Co. (WPC) $1,500 1.10 16.00% Makissi Corp. (MC) $3,000 0.30 19.50% Suppose all stocks in Emma's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Suppose all stocks in the portfollio were equally weighted. which of these stocks would have the least amount of standalone risk? O Water and Power Co O Tobotics Inc O Makissi Corp. O Perpetualcold Refrigeration Co. Perpetualcold Refrigeration Co. Tobotics Inc. O Water and Power Co. O Makissi Corp If the risk-free rate is 7% and the market risk premium is 9%, what is Emma's portfolio's beta and required retum? Fill in the following table: Required Return Beta Emma's portfolio
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