3. Portfolio risk and return Emma holds a $10,000 portfolio that consists of four stocks. Her...

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3. Portfolio risk and return Emma 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 Investment Beta Standard Deviation Perpetualcold Refrigeration Co. (PRC) $3,500 0.80 9.00% Zaxatti Enterprises (ZE) $2,000 1.50 12.00% Water and Power Co. (WPC) $1,500 1.20 16.00% Flitcom Corp. (FC) $3,000 0.30 22,50% Suppose all stocks in Emma's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Zaxatti Enterprises Perpetualcold Refrigeration Co. Flitcom Corp. Water and Power Co. Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? O Fitcom Corp. Perpetualcold Refrigeration Co. O Water and Power Co. O Zaxatti Enterprises If the risk-free rate is 7% and the market risk premium is 8.5%, what is Emma's portfolio's beta and required return? Fill in the following table: Beta Required Return Emma's portfolo Grade It Now Save & Continue Continue without saving 3. Portfolio risk and return Emma 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 Investment Beta Standard Deviation Perpetualcold Refrigeration Co. (PRC) $3,500 0.80 9.00% Zaxatti Enterprises (ZE) $2,000 1.50 12.00% Water and Power Co. (WPC) $1,500 1.20 16.00% Flitcom Corp. (FC) $3,000 0.30 22,50% Suppose all stocks in Emma's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Zaxatti Enterprises Perpetualcold Refrigeration Co. Flitcom Corp. Water and Power Co. Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? O Fitcom Corp. Perpetualcold Refrigeration Co. O Water and Power Co. O Zaxatti Enterprises If the risk-free rate is 7% and the market risk premium is 8.5%, what is Emma's portfolio's beta and required return? Fill in the following table: Beta Required Return Emma's portfolo Grade It Now Save & Continue Continue without saving

Answer rating: 100% (QA)

B D E Stock Market value Weights in portfolio Beta Weighted beta 23 24 PRC 3500 03500 080 028 2... View the full answer