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Stock Investment Beta Standard Deviation Andalusian Limited (AL) $3,500 0.80 15.00% Kulatsu Motors Co. (KMC) $2,000 1.50 12,00% Western Gas & Electric Co. (WGC) $1,500

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Stock Investment Beta Standard Deviation Andalusian Limited (AL) $3,500 0.80 15.00% Kulatsu Motors Co. (KMC) $2,000 1.50 12,00% Western Gas & Electric Co. (WGC) $1,500 1.20 16.00% Makissi Corp. (MC) $3,000 0.50 22.50% Suppose all stocks in Ariel's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Andalusian Limited Makissi Corp. Western Gas & Electric Co. Kulatsu Motors.co. Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of standalone risk? O Western Gas & Electric Co. Makissi Corp. Kulatsu Motors Co. Andalusian Limited If the risk-free rate is 4% and the market risk premium is 6%,. what is Ariel's portfolio's beta and required return? Fill in the following table: Beta Required Return Ariel's portfolio

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