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:StockInvestmentBetaStandard DeviationAndalusian Limited (AL)$2,6250.909.00%Kulatsu Motors Co. (KMC)$1,5001.3011.00%Western Gas & Electric Co. (WGC)$1,1251.1018.00%Makissi Corp. (MC)$2,2500.3019.50% Suppose all stocks in Ariel's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio?Kulatsu Motors Co.Makissi Corp.Western Gas & Electric Co.Andalusian LimitedSuppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk?Andalusian LimitedKulatsu Motors Co.Makissi Corp.Western Gas & Electric Co.If the risk-free rate is 7% and the market risk premium is 8.5%, what is Ariel's portfolio's beta and required return? Fill in the following table:BetaRequired ReturnAriel's portfolio

Here data is given for Investment, beta and standard deviation. We have to choose right options for…

Answered: Ariel holds a $7,500 portfolio that…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Risk taking is an important part of investing. In order to make suitable investment decisions on behalf of their customers, portfolio managers give a questionnaire to new customers to measure their desire to take financial risks. The scores on the questionnaire are approximately normally distributed with a mean of 50.5 and a standard deviation of 16. The customers with scores in the bottom 5% are described as "risk averse. What is the questionnaire score that separates customers who are considered risk averse from those who ar not? Carry your intermediate computations to at least four decimal places. Round your answer to one decimal place. U Continue X S Submit Terms of Use | Privacy Center
Risk taking is an important part of investing. In order to make suitable investment decisions on behalf of their customers, portfolio managers give a questionnaire to new customers to measure their desire to take financial risks. The scores on the questionnaire are approximately normally distributed with a mean of 50 and a standard deviation of 14. The customers with scores in the bottom 15% are described as "risk averse." What is the questionnaire score that separates customers who are considered risk averse from those who are not? Carry your intermediate computations to at least four decimal places. Round your answer to one decimal place.
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