Question
Emma holds a $7,500 portfolio that consists of four stocks. Her investment in each stock, as well as each stocks beta, is listed in the
Emma holds a $7,500 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) $2,625 0.80 9.00% Tobotics Inc. (TI) $1,500 1.30 11.00% Three Waters Co. (TWC) $1,125 1.10 16.00% Makissi Corp. (MC) $2,250 0.30 19.50%
Suppose all stocks in Emmas portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio?
Andalusian Limited
Makissi Corp.
Tobotics Inc.
Three Waters Co.
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