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Emma holds a $5,000 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 $5,000 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 Omni Consumer Products Co. (OCP) Kulatsu Motors Co. (KMC) Western Gas & Electric Co. (WGC) Flitcom Corp. (FC) Investment $1,750 $1,000 $750 $1,500 Beta 0.80 1.50 1.15 0.40 Standard Deviation 12.00% 11.50% 16.00% 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? Suppose all stocks in the portfolio were equally weighted Which of these stocks would have the least amount of standalone risk? O Flitcom Corp Omni Consumer Products Co Kulatsu Motors Co Western Gas & Electric Co Omni Consumer Products Co Kulatsu Motors Co Western Gas & Electric Co O Flitcom Corp If the risk-free rate is 4% and the market risk premium is 6%, 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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