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 fo table: Stock Omni Consumer Products Co. (OCP) Tobotics Inc. (TI) Water and Power Co. (WPC) Makissi Corp. (MC) OOmni Consumer Products Co. O Makissi Corp. Tobotics Inc. Suppose all stocks in Cheyenne's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Water and Power Co. O Makissi Corp. Water and Power Co. Investment Beta $2,625 0.90 $1,500 1.90 $1,125 1.20 $2,250 Omni Consumer Products Co. 0.30 Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? O Tobotics Inc. Standard Deviation 9.00% 12.00% 18.00% 28.50%
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 fo table: Stock Omni Consumer Products Co. (OCP) Tobotics Inc. (TI) Water and Power Co. (WPC) Makissi Corp. (MC) OOmni Consumer Products Co. O Makissi Corp. Tobotics Inc. Suppose all stocks in Cheyenne's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Water and Power Co. O Makissi Corp. Water and Power Co. Investment Beta $2,625 0.90 $1,500 1.90 $1,125 1.20 $2,250 Omni Consumer Products Co. 0.30 Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? O Tobotics Inc. Standard Deviation 9.00% 12.00% 18.00% 28.50%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Tobotics Inc. (TI)
Water and Power Co. (WPC)
Makissi Corp. (MC)
O Omni Consumer Products Co.
O Makissi Corp.
O Tobotics Inc.
Suppose all stocks in Cheyenne's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio?
O Water and Power Co.
O Makissi Corp.
O Water and Power Co.
O Omni Consumer Products Co.
Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk?
O Tobotics Inc.
If the risk-free rate is 4% and the market r
$1,500
$1,125
$2,250
Cheyenne's portfolio
Beta
1,070.65%
9.31%
1.90
1.20
0.30
726.18%
1,154.44%
12.00%
18.00%
28.50%
urn
5.5%, what is Cheyenne's portfolio's beta and required return? Fill in the following table:
Transcribed Image Text: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
Omni Consumer Products Co. (OCP)
Tobotics Inc. (TI)
Water and Power Co. (WPC)
Makissi Corp. (MC)
O Omni Consumer Products Co.
O Makissi Corp.
Tobotics Inc.
O Water and Power Co.
Suppose all stocks in Cheyenne's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio?
O Makissi Corp.
O Water and Power Co.
Investment Beta
$2,625
0.90
$1,500
1.90
$1,125
1.20
$2,250
Omni Consumer Products Co.
0.30
O Tobotics Inc.
Standard Deviation
Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk?
9.00%
12.00%
18.00%
28.50%
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