Portfolio risk and return Emma 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 Investment Beta Standard Deviation Andalusian Limited (AL) $2,625 0.80 15.00% Kulatsu Motors Co. (KMC) $1,500 1.90 11.00% Water and Power Co. (WPC) $1,125 1.10 16.00% Makissi Corp. (MC) $2,250 0.50 28.50% If the risk-free rate is 7% and the market risk premium is 8.5%, what is Emma’s portfolio’s beta and required return? Fill in the following table: If the risk-free rate is 7% and the market risk premium is 8.5%, what is Emma’s portfolio’s beta and required return? Fill in the following table: BETA 0.9750 REQUIRED RETURN 0.8288 867.50% 0.6533 2,232.50% 1.4625 15.29% 1,895.96%

Portfolio risk and return Emma 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 Investment...

Portfolio risk and return

Emma 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	Investment	Beta	Standard Deviation
Andalusian Limited (AL)	$2,625	0.80	15.00%
Kulatsu Motors Co. (KMC)	$1,500	1.90	11.00%
Water and Power Co. (WPC)	$1,125	1.10	16.00%
Makissi Corp. (MC)	$2,250	0.50	28.50%

If the risk-free rate is 7% and the market risk premium is 8.5%, what is Emma’s portfolio’s beta and required return? Fill in the following table:

BETA 0.9750 REQUIRED RETURN

0.8288 867.50%

0.6533 2,232.50%

1.4625 15.29%

1,895.96%

Jun 10, 2022

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Portfolio risk and return Emma 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 Investment...

Portfolio risk and return

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