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4. Portrollo PISK and return 9.00 Ariel holds a $10,000 portfolio that consists of four...

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4. Portrollo PISK and return 9.00 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) Western Gas & Electric Co. (WGC) Makissi Corp. (MC) Investment $3,500 $2,000 $1,500 $3,000 Beta 0.80 1.50 1.20 0.50 Standard Deviation 15.00% 12.00% 16.00% 22.50% Suppose all stocks in Ariel's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Okulatsu Motors Co. O Western Gas & Electric Co. O Makissi Corp. O Andalusian Limited Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of standalone risk? O Western Gas & Electric Co. O Makissi Corp. Andalusian Limited Okulatsu Motors Co. If the risk-free rate is 4% and the market risk premium is 5.5%, 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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