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Please answer the multiple-choice and blanks at the bottom. Attempts: Average: /0.2 10. Portfolio risk and return Emma holds a $5,000 portfolio that consists of
Please answer the multiple-choice and blanks at the bottom.
Attempts: Average: /0.2 10. Portfolio risk and return Emma holds a $5,000 portfolio that consists of four stocks. Her investment in each stock, as well as each stock's beta, is listed in the following table: Standard Deviation 9.00% Stock Andalusian Limited (AL) Zaxatti Enterprises (ZE) Water and Power Co. (WPC) Makissi Corp. (MC) Investment $1,750 $1,000 $750 $1,500 Beta 0.90 1.90 1.20 0.30 12.00% 18.00% 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? O Water and Power Co. O Makissi Corp. O Andalusian Limited Zaxatti Enterprises Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of standalone risk? O Water and Power Co. O Andalusian Limited O Zaxatti Enterprises O Makissi Corp. If the risk-free rate is 7% and the market risk premium is 9%, what is Emma's portfolio's beta and required return? Fill in the following table: Beta Required Return - Emma's portfolioStep by Step Solution
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