Options for The last Question

Beta- 0.8118 | 0.6399 | 1.4325 | 0.9550

Required Return (all in percentages)- 9.25 | 1147 | 721.50 | 568.00

Elle holds a $10,000 portfolio that consists of four stocks. Her investment in each stock, as well as each stock's beta, is listed in the following table: Beta Investment $3,500 1.00 Stock Perpetualcold Refrigeration Co. (PRC) Kulatsu Motors Co. (KMC) Western Gas & Electric Co. (WGC) Mainway Toys Co. (MTC) Standard Deviation 18.00% 11.00% 20.00% 1.30 $2,000 $1,500 $3,000 1.10 0.60 19.50% Suppose all stocks in Elle's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Western Gas & Electric Co. Perpetualcold Refrigeration Co. Kulatsu Motors Co. Mainway Toys Co. Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? Western Gas & Electric Co. Perpetualcold Refrigeration Co. O Mainway Toys Co. O kulatsu Motors Co. If the risk-free rate is 4% and the market risk premium is 5.5%, what is Elle's portfolio's beta and required return? Fill in the following table: Beta Required Return Elle's portfolio