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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 0.80 12.00% 1.30 11.00% Andalusian Limited (AL) Tobotics Inc. (TI) Western Gas & Electric Co. (WGC) Mainway Toys Co. (MTC) $2,625 $1,500 $1,125 $2,250 1.10 16.00% 0.40 19.50% 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 Western Gas & Electric Co. O Mainway Toys Co. Tobotics Inc. O Andalusian Limited O Tobotics Inc. O Mainway Toys Co. O Western Gas & Electric Co. O Andalusian Limited 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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