Question: Attempts: Keep the Highest: 13 4. Portfolio risk and return Cheyenne holds a $10,000 portfolio that consists of four stocks. Her investment in each stock,


Attempts: Keep the Highest: 13 4. Portfolio risk and return Cheyenne 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: Standard Deviation Stock Perpetualcold Refrigeration Co. (PRC) Kulatsu Motors Co. (KMC) Water and Power Co. (WPC) Makissi Corp. (MC) 18.00% Investment $3,500 $2,000 $1,500 $3,000 Beta 0.90 1.30 1.20 12.00% 18.00% 19.50% 0.60 Suppose all stocks in Cheyenne's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Perpetualcold Refrigeration Co. Water and Power Co. Makissi Corp. Okulatsu Motors Co. Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? O Makissi Corp. O kulatsu Motors Co. O Perpetualcold Refrigeration Co. O Water and Power Co. If the risk-free rate is 4% and the market risk premium is 5.5%, what is Cheyenne's portfolio's beta and required return? Fill in the following table: Required Return Cheyenne's portfolio
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