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Emma holds a $7,500 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 $7,500 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 $2,625 0.80 9.00% Andalusian Limited (AL) Kulatsu Motors Co. (KMC) Western Gas & Electric Co. (WGC) $1,500 1.90 11.50% $1,125 1.15 16.00% Flitcom Corp. (FC) $2,250 0.30 28.50% Suppose all stocks in Emma's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Okulatsu Motors Co. O Western Gas & Electric Co. O Andalusian Limited O Flitcom Corp. Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? O Flitcom Corp. O Andalusian Limited O Western Gas & Electric Co. Okulatsu Motors Co. 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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