Question

Cheyenne holds a $7,500 portfolio that consists of four stocks. Her investment in each stock, as...

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

Investment

Beta

Standard Deviation
Andalusian Limited (AL) $2,625 0.90 18.00%
Kulatsu Motors Co. (KMC) $1,500 1.30 12.00%
Western Gas & Electric Co. (WGC) $1,125 1.20 18.00%
Mainway Toys Co. (MTC) $2,250 0.60 19.50%

Suppose all stocks in Cheyenne’s portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio?

Mainway Toys Co.

Andalusian Limited

Western Gas & Electric Co.

Kulatsu Motors Co.

Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk?

Mainway Toys Co.

Western Gas & Electric Co.

Andalusian Limited

Kulatsu Motors Co.

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

Beta

Required Return
Cheyenne’s portfolio      
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Cheyenne holds a $5,000 portfolio that consists of four stocks. Her investment in each stock, as...
Cheyenne 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: Stock Investment Beta Standard Deviation Omni Consumer Products Co. (OCP) $1,750 1.00 9.00% Tobotics Inc. (TI) $1,000 1.30 11.00% Western Gas & Electric Co. (WGC) $750 1.10 20.00% Makissi Corp. (MC) $1,500 0.30 19.50% Suppose all stocks in Cheyenne’s portfolio were equally weighted. Which of these stocks would contribute the least market risk...
7. Portfolio risk and return Ariel holds a $7,500 portfolio that consists of four stocks. Her...
7. Portfolio risk and return Ariel 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 Perpetualcold Refrigeration Co. (PRC) $2,625 0.90 18.00% Zaxatti Enterprises (ZE) $1,500 1.70 11.00% Western Gas & Electric Co. (WGC) $1,125 1.10 18.00% Flitcom Corp. (FC) $2,250 0.60 25.50% Suppose all stocks in Ariel’s portfolio were equally weighted. Which of these stocks would contribute...
Elle holds a $10,000 portfolio that consists of four stocks. Her investment in each stock, as...
Elle 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 Investment Beta    Standard Deviation Omni Consumer Products Co. (OCP) $3,500    0.90 15.00% Kulatsu Motors Co. (KMC)    $2,000 1.70 11.00% Water and Power Co. (WPC)    $1,500    1.10    18.00% Mainway Toys Co. (MTC)    $3,000    0.50 25.50% Suppose all stocks in Elle’s portfolio were equally weighted. Which...
8. Portfolio risk and return Elle holds a $7,500 portfolio that consists of four stocks. Her...
8. Portfolio risk and return Elle 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 Omni Consumer Products Co. (OCP) $2,625 0.80 9.00% Tobotics Inc. (TI) $1,500 1.50 11.00% Water and Power Co. (WPC) $1,125 1.10 16.00% Mainway Toys Co. (MTC) $2,250 0.30 22.50% Suppose all stocks in Elle’s portfolio were equally weighted. Which of these stocks would...
Conceptual questions on portfolio and stand-alone risk Latasha holds a $7,500 portfolio that consists of four...
Conceptual questions on portfolio and stand-alone risk Latasha 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 Perpetualcold Refrigeration Co. (PRC) $2,625 0.90 9.00% Kulatsu Motors Co. (KMC) $1,500 1.70 11.00% Three Waters Co. (TWC) $1,125 1.10 18.00% Mainway Toys Co. (MTC) $2,250 0.30 25.50% Suppose all stocks in Latasha’s portfolio were equally weighted. The stock that would...
Elle holds a $10,000 portfolio that consists of four stocks. Her investment in each stock, as...
Elle 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 Investment Beta Standard Deviation Omni Consumer Products Co. (OCP) $3,500 1.00 9.00% Tobotics Inc. (TI) $2,000 1.50 11.50% Three Waters Co. (TWC) $1,500 1.15 20.00% Mainway Toys Co. (MTC) $3,000 0.30 22.50% Suppose all stocks in Elle’s portfolio were equally weighted. Which of these stocks would contribute the least market risk...
. Portfolio risk and return Emma holds a $5,000 portfolio that consists of four stocks. Her...
. Portfolio risk and return Emma 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: Stock Investment Beta Standard Deviation Andalusian Limited (AL) $1,750 0.90 12.00% Tobotics Inc. (TI) $1,000 1.30 12.00% Water and Power Co. (WPC) $750 1.20 18.00% Makissi Corp. (MC) $1,500 0.40 19.50% Suppose all stocks in Emma’s portfolio were equally weighted. Which of these stocks would contribute the least...
Elle holds a $10,000 portfolio that consists of four stocks. Her investment in each stock, as...
Elle 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 Investment Beta Standard Deviation Omni Consumer Products Co. (OCP) $3,500 1.00 12.00% Zaxatti Enterprises (ZE) $2,000 1.30 11.00% Water and Power Co. (WPC) $1,500 1.10 20.00% Flitcom Corp. (FC) $3,000 0.40 19.50% Suppose all stocks in Elle’s portfolio were equally weighted. Which of these stocks would contribute the least market risk to...
8. Portfolio risk and return Elle holds a $10,000 portfolio that consists of four stocks. Her...
8. Portfolio risk and return Elle 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 Investment Beta Standard Deviation Perpetualcold Refrigeration Co. (PRC) $3,500 0.90 15.00% Kulatsu Motors Co. (KMC) $2,000 1.50 12.00% Water and Power Co. (WPC) $1,500 1.20 18.00% Makissi Corp. (MC) $3,000 0.50 22.50% Suppose all stocks in Elle’s portfolio were equally weighted. Which of these stocks would contribute...
3. Portfolio risk and return Ariel holds a $10,000 portfolio that consists of four stocks. Her...
3. Portfolio risk and return 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 Investment Beta Standard Deviation Omni Consumer Products Co. (OCP) $3,500 1.00 9.00% Zaxatti Enterprises (ZE) $2,000 1.50 12.00% Water and Power Co. (WPC) $1,500 1.20 20.00% Makissi Corp. (MC) $3,000 0.30 22.50% Suppose all stocks in Ariel’s portfolio were equally weighted. Which of these stocks would contribute...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT