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help please Ariel holds a $7,500 portfolio that consists of four stocks. Her investment in each stock, as well as each stocks beta, is listed
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Ariel 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: Investment Beta Stock Omni Consumer Products Co. (OCP) Kulatsu Motors Co. (KMC) Three Waters Co. (TWC) Flitcom Corp. (FC) $2,625 $1,500 1.00 1.50 Standard Deviation 9.00% 12.00% 20.00% 22.50% $1,125 $2,250 1.20 0.30 Suppose all stocks in Ariel's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Omni Consumer Products Co. Kulatsu Motors Co. Fitcom Corp Three Waters Co. Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? Three Waters Co. Flitcom Corp Kulatsu Motors Co. Omni Consumer Products Co. Filtcom Corp Kulatsu Motors Co. Omni Consumer Products Co. If the risk-free rate is 7% and the market risk premium is 8.5%, what is Ariel's portfolio's bets and required return? Fill in the following table: Beta Required Return Ariel's portfolio at Step by Step Solution
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