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Portfolio risk and return Cheyenne holds a $ 7 , 5 0 0 portfolio that consists of four stocks. Her investment in each stock, as
Portfolio risk and return
Cheyenne 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 Cheyenne's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio?
Western Gas & Electric Co
Makissi Corp.
Perpetualcold Refrigeration Co
Tobotics Inc.
Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of standalone risk?
Makissi Corp.
Western Gas & Electric Co
Perpetualcold Refrigeration Co
Tobotics Inc.
If the riskfree rate is and the market risk premium is what is Cheyenne's portfolio's beta and required return? Fill in the following table:
Beta
Required Return
Cheyenne's portfolio
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