Eric holds a $5,000 portfolio that consists of four stocks. His investment in each stock, as well as each stocks beta, is listed in the following table:

Suppose all stocks in Erics portfolio were equally weighted. The stock that would contribute the least systematic risk to the portfolio is (Kulatsu Motora Co. / Makissi Corp / Omni Consumer Products Co. / Western Gas & Electric Co.).

Further, if all of the stocks in the portfolio were equally weighted, the stock that would have the least amount of unsystematic risk is (Kulatsu Motora Co. / Makissi Corp / Omni Consumer Products Co. / Western Gas & Electric Co.).

If the risk-free rate is 7.00% and the market risk premium is 9.50%, then Erics portfolio will exhibit a beta of (0.647 / 0.820 / 0.965 / 1.448) and a required return of (12.61% / 16.17% / 20.05% / 23.26 %).

Stock Investment Beta Standard Deviation Omni Consumer Products Co. (OCP) $1,750 0.90 9.00% $1,000 1.90 12.00% Kulatsu Motors Co(KMC) Western Gas & Electric Co. (WGC) $750 1.20 18.00% Makissi Corp. (MC) $1,500 0.30 28.50%