Portfolio risk and return

Emma holds a $10,000 portfolio that consists of four stocks. Her investment in each stock, as well as each stocks beta, is listed in the following table:

Stock	Investment	Beta	Standard Deviation
Perpetualcold Refrigeration Co. (PRC)	$3,500	1.00	15.00%
Kulatsu Motors Co. (KMC)	$2,000	1.50	11.00%
Three Waters Co. (TWC)	$1,500	1.10	20.00%
Makissi Corp. (MC)	$3,000	0.50	22.50%

1)

Suppose all stocks in Emmas portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? [ Select ] ["Three Waters Co.", "Kulatsu Motors Co.", "Perpetualcold Refrigeration Co.", "Makissi Corp."]

2)

Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? [ Select ] ["Kulatsu Motors Co.", "Perpetualcold Refrigeration Co.", "Three Waters Co.", "Makissi Corp."]

3)

If the risk-free rate is 7% and the market risk premium is 8.5%, what is Emmas portfolios beta and required return?

Beta [ Select ] ["0.6466", "0.8203", "1.4475", "0.9650"]

Required return [ Select ] ["15.2", "18.4", "22.25", "17.48"] %

Flag question: Question 5

Question 51 pts

Assume that the risk-free rate is 6.5% and the required return on the market is 8%. What is the required rate of return on a stock with a beta of 3? Round your answer to two decimal places. ___%

Flag question: Question 6

Question 61 pts

Assume that the risk-free rate is 6.5% and the market risk premium is 4%. What is the required return for the overall stock market? Round your answer to one decimal place.