8. Portfolio risk and returnAriel 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:StockAndalusian Limited (AL)Zaxatti Enterprises (ZE)Three Waters Co. (TWC)Flitcom Corp. (FC)Suppose all stocks in Ariel's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio?O Flitcom Corp.O Three Waters Co.O Andalusian LimitedO Zaxatti EnterprisesO Zaxatti EnterprisesO Three Waters Co.O Andalusian LimitedO Flitcom Corp.Investment Beta Standard Deviation$3,5001.00$2,0001.30$1,5001.20$3,0000.30Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk?Ariel's portfolio9.00%12.00%20.00%19.50%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:BetaRequired Return

Risk is related to loss from an investment made. It is typically measured by factors such as…

Suppose all stocks in Ariel's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? O Flitcom Corp. Three Waters Co. Andalusian Limited O Zaxatti Enterprises Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? O Zaxatti Enterprises Three Waters Co. Andalusian Limited Flitcom Corp. 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:

Suppose all stocks in Ariel's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? O Flitcom Corp. Three Waters Co. Andalusian Limited O Zaxatti Enterprises Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? O Zaxatti Enterprises Three Waters Co. Andalusian Limited Flitcom Corp. 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:

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter8: Risk And Rates Of Return

Section: Chapter Questions

Problem 18PROB

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