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Sam holds a $5,000 portfolio that consists of four stocks. His investment in each stock, as well as each stock's beta, is listed in the
Sam holds a $5,000 portfolio that consists of four stocks. His investment in each stock, as well as each stock's beta, is listed in the following table Stock Andalusian Limited (AL) Tobotics Inc. (TI) Three Waters Co. (TWC) Mainway Toys Co. (MTC) Investment Beta Standard Deviation 1.00 1.90 1.20 $1,5000.60 $1,750 $1,000 $750 18.00% 12.00% 20.00% 28.50% Suppose all stocks in Sam's portfolio were equally weighted. The stock that would contribute the least market risk to the portfolio IS standalone risk is Further, if all of the stocks in the portfolio were equally weighted, the stock that would have the least amount of If the risk-free rate is 5.00% and the market risk premium is 7.50%, then Sam's portfolio will exhibit a beta of and a required return of
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