Elle holds a $5,000 portfolio that consists of four stocks. Her Investment in each stock, as well as each stock's beta,
Posted: Sun Apr 17, 2022 6:27 pm
Elle 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 Investment Beta Standard Deviation $1,750 1.00 9.00% Stock Omni Consumer Products Co. (OCP) Zaxatti Enterprises (ZE) Western Gas & Electric Co. (WGC) Fitcom Corp. (FC) $1,000 1.90 11.50% $750 1.15 20.00% 28.5096 $1,500 0.30 Suppose all stocks in Elle's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio Omni Consumer Products Co. Filtcom Corp. гу O Western Gas & Electric Co. Zaxatti Enterprises Suppose all stocks in the portfolio were equally welghted. Which of these stocks would have the least amount of stand-alone risk? Western Gas & Electric Co. Flitcom Corp Zaxatti Enterprises Omni Consumer Products Co. If the risk free rate is 4% and the market risk premium is 5.5%, what is Elle's portfolio's beta and required return? Fill in the following table: Beta Required Return Elle's portfolio