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Emma holds a $10,000 portfolio that consists of four stocks. Her investment in each stock, as well as each stock's beta, is listed in the
Emma holds a $10,000 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 $3,500 0.80 18.00% 1.50 11.50% Perpetualcold Refrigeration Co. (PRC) Kulatsu Motors Co. (KMC) Western Gas & Electric Co. (WGC) Makissi Corp. (MC) $2,000 $1,500 1.15 16.00% $3,000 0.60 22.50% Suppose all stocks in Emma's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? O Makissi Corp. O Western Gas & Electric Co. O kulatsu Motors Co. O Perpetualcold Refrigeration Co. Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? Western Gas & Electric Co. Perpetualcold Refrigeration Co. O kulatsu Motors Co. O Makissi Corp. If the risk-free rate is 4% and the market risk premium is 5.5%, what is Emma's portfolio's beta and required return? Fill in the following table: Beta Required Return Emma's portfolio
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