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  3. 4. portfolio risk and return aa aa ariel holds a $

4. Portfolio risk and return Aa Aa Ariel holds a $5,000 portfolio that consists of...

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4. Portfolio risk and return Aa Aa Ariel 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 $1,750 $1,000 $750 $1,500 Beta 0.80 1.30 1.10 0.50 Standard Deviation 15.00% 11.00% 16.00% 19.50% Stock Perpetualcold Refrigeration Co. (PRC) Tobotics Inc. (TI) Three Waters Co. (TWC) Makissi Corp. (MC) Suppose all stocks in Ariel's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Suppose all stocks in the portfolio were equally weighted Which of these stocks would have the least amount of standalone risk? O Makissi Corp O Perpetualcold Refrigeration Co O Tobotics Inc O Tobotics Inc. Three Waters Co. O Makissi Corp O Perpetualcold Refrigeration Co Three Waters Co. If the risk-free rate is 4% and the market risk premium is 6%, what is Ariel's portfolio's beta and required return? Fill in the following table Beta Required Return Ariel's portfolio

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