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step by step solution(please don't cut off your image). Ch 08: Assignment - Risk and Rates of Return 3. Portfolio risk and return Elle holds

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Ch 08: Assignment - Risk and Rates of Return 3. Portfolio risk and return Elle holds a $10,000 portfolio that consists of four stocks. Her investment in each stock, as well as each stock's beta, is listed in the following tables Stock Standard Deviation Investment $3,500 Beta 0.80 15.00% 1.70 11.50% Andalusian Limited (AL) Zaxatti Enterprises (ZE) Water and Power Co. (WPC) Flitcom Corp (FC) $2,000 $1,500 $3,000 1.15 16.00% 25.50% 0.50 Suppose all stocks in Elle's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Zaxatti Enterprises Fitcom Corp Andalusian Limited Water and Power Co. Ch 08: Assignment - Risk and Rates of Return Zavatti Enterprises Fitcom Corp. Andalusian Limited Water and Power Co. Suppose al stocks in the portfolia were equally weighted. Which of these stocks would have the least amount of stand-alone risk? Fitcom Corp Andalusian Limited Water and Power Co. watt Enterprises If the risk free rate is 74 and the market risk premium is 8.5%, what is elte's portfolio's bets and required retum? Fat in the following table: Beta Required Return Elle's portfolio

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