Cheyenne holds a $7,500 portfolio that consists of four stocks. Her investment in each stock,...
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Cheyenne holds a $7,500 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) Zaxatti Enterprises (ZE) Western Gas & Electric Co. (WGC) Makissi Corp. (MC) Investment $2,625 $1,500 $1,125 $2,250 Beta 0.90 1.70 Standard Deviation 18.00% 12.00% 1.20 18.00% 0.60 25.50% Suppose all stocks in Cheyenne's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Western Gas & Electric Co. O Andalusian Limited 0 Makissi Corp. Zaxatti Enterprises Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? Western Gas & Electric Co. Makissi Corp. Zaxatti Enterprises Andalusian Limited 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: Beta Required Return
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