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Susan holds a $5,000 portfolio that consists of four stocks. Her investment in each stock, as well as each stock's beta, is listed in the
Susan holds a $5,000 portfolio that consists of four stocks. Her investment in each stock, as well as each stock's beta, is listed in the following table Stock Perpetualcold Refrigeration Co. (PRC) Tobotics Inc. (TI) Western Gas & Electric Co. (WGC) Mainway Toys Co. (MTC) Investment Beta Standard Deviation $1,750 $1,000 $750 $1,500 0.90 1.90 1.20 0.30 9.000096 12.0000% 18.0000% 28.5000% Suppose all stocks in Susan's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Tobotics Inc. Mainway Toys Co 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 standalone risk? Tobotics Inc. Mainway Toys Co Perpetualcold Refrigeration Co Western Gas & Electric Co If the risk-free rate is 7.0000% and the market risk premium is 8.5000%, what is Susan's portfolio's beta and required return? Fill in the following table: Beta Required Return Susan's portfolio
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