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Portfolio risk and return Ariel holds a $ 1 0 , 0 0 0 portfolio that consists of four stocks. Her investment in each stock,
Portfolio risk and return
Ariel holds a $ portfolio that consists of four stocks. Her investment in each stock, as well as each stock's beta, is listed in the following table:
Suppose all stocks in Ariel's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio?
Makissi Corp.
Tobotics Inc.
Water and Power Co
Andalusian Limited
Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of standalone risk?
Makissi Corp.
Andalusian Limited
Tobotics Inc.
Water and Power Co
If the riskfree rate is and the market risk premium is what is Ariel's portfolio's beta and required return? Fill in the following table:
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