Suppose all stocks in Emmas portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio?

Mainway Toys Co.

Zaxatti Enterprises

Perpetualcold Refrigeration Co.

Western Gas & Electric Co.

Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk?

Zaxatti Enterprises

Mainway Toys Co.

Perpetualcold Refrigeration Co.

Western Gas & Electric Co.

If the risk-free rate is 4% and the market risk premium is 5.5%, what is Emmas portfolios beta and required return? Fill in the following table:

	Beta	Required Return
Emmas portfolio

Stock Investment Beta Standard Deviation Perpetualcold Refrigeration Co. (PRC) $2,625 1.00 12.00% Zaxatti Enterprises (ZE) $1,500 1.30 11.50% Western Gas & Electric Co. (WGC) $1,125 1.15 20.00% Mainway Toys Co. (MTC) $2,250 0.40 19.50%