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Emma holds a $ 5 , 0 0 0 portfolio that consists of four stocks. Her investment in each stock, as well as each stock

Emma holds a $5,000 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
Omni Consumer Products Co.(OCP) $1,7501.0012.00%
Kulatsu Motors Co.(KMC) $1,0001.7011.50%
Western Gas & Electric Co.(WGC) $7501.1520.00%
Makissi Corp. (MC) $1,5000.4025.50%
Suppose all stocks in Emmas portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio?
Kulatsu Motors Co.
Omni Consumer Products Co.
Western Gas & Electric Co.
Makissi Corp.
Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk?
Makissi Corp.
Western Gas & Electric Co.
Kulatsu Motors Co.
Omni Consumer Products Co.
If the risk-free rate is 7% and the market risk premium is 8.5%, what is Emmas portfolios beta and required return? Fill in the following table:
Beta
Required Return
Emmas portfolio

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