Ariel holds a $10,000 portfolio that consists of four stocks. Her investment in each stock, as well as each stock's beta

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Ariel Holds A 10 000 Portfolio That Consists Of Four Stocks Her Investment In Each Stock As Well As Each Stock S Beta 1 (36.97 KiB) Viewed 34 times

Ariel 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 table: Stock Andalusian Limited (AL) Kulatsu Motors Co. (KMC) Water and Power Co. (WPC) Mainway Toys Co. (MTC) Kulatsu Motors Co. 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. Mainway Toys Co. Water and Power Co. Investment Beta Standard Deviation $3,500 0.90 $2,000 1.70 $1,500 1.15 $3,000 0.40 12.00% 11.50% 18.00% 25.50% Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? O Water and Power Co. O Andalusian Limited Kulatsu Motors Co. Mainway Toys Co. Beta Ariel's portfolio 0.9475 If the risk-free rate is 7% and the market risk premium is 8.5%, what is Ariel's portfolio's beta and required return? Fill in the following table: Required Return 15.05%