table: $20,000 portrong that con SLUCK, as well as As Deta, is listed in the following Stock Investment Beta Standard Deviation Omni Consumer Products Co. (OCP) $3,500 1.00 18.00% Zaxatti Enterprises (ZE) $2,000 1.50 11.50% Western Gas & Electric Co. (WGC) $1,500 1.15 20.00% Filtcom Corp. (FC) $3,000 0.60 22.50% Suppose all stocks in Cheyenne's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Filtcom Corp. Western Gas & Electric Co. O Omni Consumer Products Co. O Zaxatti Enterprises
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- 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 0.80 15.00% Kulatsu Motors Co. (KMC) $1,500 1.90 11.50% Western Gas & Electric Co. (WGC) $1,125 1.15 16.00% Mainway Toys Co. (MTC) $2,250 0.50 28.50% Suppose all stocks in Ariel’s portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Mainway Toys Co. Western Gas & Electric Co. Kulatsu Motors Co. Perpetualcold Refrigeration Co. Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? Perpetualcold Refrigeration Co. Western Gas & Electric Co. Kulatsu Motors Co. Mainway Toys Co. If the risk-free rate is 4% and the market risk…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 0.80 15.00% Kulatsu Motors Co. (KMC) $1,500 1.90 11.50% Western Gas & Electric Co. (WGC) $1,125 1.15 16.00% Mainway Toys Co. (MTC) $2,250 0.50 28.50% Suppose all stocks in Ariel’s portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Mainway Toys Co. Western Gas & Electric Co. Kulatsu Motors Co. Perpetualcold Refrigeration Co. Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? Perpetualcold Refrigeration Co. Western Gas & Electric Co. Kulatsu Motors Co. Mainway Toys Co. If the risk-free rate is 4% and the…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 Omni Consumer Products Co. (OCP) $2,625 0.80 12.00% Tobotics Inc. (TI) $1,500 1.30 11.00% Water and Power Co. (WPC) $1,125 1.10 16.00% Makissi Corp. (MC) $2,250 0.40 19.50% Suppose all stocks in Emma’s portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Omni Consumer Products Co. Makissi Corp. Water and Power Co. Tobotics Inc. Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? Water and Power Co. Omni Consumer Products Co. Tobotics Inc. Makissi Corp. If the risk-free rate is 4% and the market risk premium is 5.5%, what is Emma’s portfolio’s beta and required…
- 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 Omni Consumer Products Co. (OCP) $2,625 1.00 9.00% Kulatsu Motors Co. (KMC) $1,500 1.70 11.50% Three Waters Co. (TWC) $1,125 1.15 20.00% Mainway Toys Co. (MTC) $2,250 0.30 25.50% Suppose all stocks in Cheyenne’s portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Three Waters Co. Omni Consumer Products Co. Kulatsu Motors Co. Mainway Toys 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. Three Waters Co. Kulatsu Motors Co. Omni Consumer Products Co. If the risk-free rate is 7% and the market risk premium is 8.5%, what is Cheyenne’s…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 0.80 9.00% Kulatsu Motors Co. (KMC) $2,000 1.90 11.00% Western Gas & Electric Co. (WGC) $1,500 1.10 16.00% Makissi Corp. (MC) $3,000 0.30 28.50% Suppose all stocks in Elle’s portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Kulatsu Motors Co. Omni Consumer Products Co. Western Gas & Electric Co. Makissi Corp. Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? Makissi Corp. Omni Consumer Products Co. Kulatsu Motors Co. Western Gas & Electric Co. If the risk-free rate is 7% and the market risk premium is 8.5%,…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 Perpetualcold Refrigeration Co. (PRC) $1,750 1.00 18.00% Zaxatti Enterprises (ZE) $1,000 1.50 12.00% Water and Power Co. (WPC) $750 1.20 20.00% Flitcom Corp. (FC) $1,500 0.60 22.50% Suppose all stocks in Emma’s portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Perpetualcold Refrigeration Co. Water and Power Co. Flitcom Corp. Zaxatti Enterprises Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? Water and Power Co. Flitcom Corp. Zaxatti Enterprises Perpetualcold Refrigeration Co. If the risk-free rate is 7% and the market risk premium is 8.5%, what is Emma’s…
- Juanita 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 0.90 9.00% Tobotics Inc. (TI) $1,500 1.90 11.00% Three Waters Co. (TWC) $1,125 1.10 18.00% Flitcom Corp. (FC) $2,250 0.30 28.50% Suppose all stocks in Juanita’s portfolio were equally weighted. The stock that would contribute the least systematic risk to the portfolio is ? . Further, if all of the stocks in the portfolio were equally weighted, the stock that would have the least amount of unsystematic risk is ? . If the risk-free rate is 5.00% and the market risk premium is 7.50%, then Juanita’s portfolio will exhibit a beta of ? and a required return of ?.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 Andalusian Limited (AL) $1,750 0.90 15.00% Tobotics Inc. (TI) $1,000 1.70 11.50% Water and Power Co. (WPC) $750 1.15 18.00% Makissi Corp. (MC) $1,500 0.50 25.50% 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. Makissi Corp. Tobotics Inc. Andalusian Limited Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? Andalusian Limited Makissi Corp. Tobotics Inc. Water and Power 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…Ariel 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 Perpetualcold Refrigeration Co. (PRC) $1,750 1.00 15.00% Tobotics Inc. (TI) $1,000 1.50 11.00% Three Waters Co. (TWC) $750 1.10 20.00% Mainway Toys Co. (MTC) $1,500 0.50 22.50% Suppose all stocks in Ariel’s portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Mainway Toys Co. Tobotics Inc. Three Waters Co. Perpetualcold Refrigeration Co. Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? Perpetualcold Refrigeration Co. Tobotics Inc. Three Waters Co. Mainway Toys 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…
- Brandon is an analyst at a wealth management firm. One of his clients holds a $5,000 portfolio that consists of four stocks. The investment allocation in the portfolio along with the contribution of risk from each stock is given in the following table: Stock Atteric Inc. (AI) Arthur Trust Inc. (AT) Li Corp. (LC) Transfer Fuels Co. (TF) Investment Allocation 35% 20% 15% 30% O 1.1069 percentage points 1.1935 percentage points O 0.9625 percentage points O 0.7508 percentage points Beta 0.900 1.500 1.300 0.400 Standard Deviation Brandon calculated the portfolio's beta as 0.930 and the portfolio's required return as 9.1150%. Brandon thinks it will be a good idea to reallocate the funds in his client's portfolio. He recommends replacing Atteric Inc.'s shares with the same amount in additional shares of Transfer Fuels Co. The risk-free rate is 4%, and the market risk premium is 5.50%. O Overvalued O Undervalued O Fairly valued 38.00% 42.00% 45.00% 49.00% According to Brandon's recommendation,…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%Analysts' estimates on expected returns from equity investments are based on several factors. These estimations also often include subjective and judgmental factors, because different analysts interpret data in different ways Suppose, based on the earnings consensus of stock analysts, Gregory expects a return of 13.54% from the portfolio with the new weights. Does he think that the required return as compared to expected returns is undervalued, overvalued, or fairly valued? O Undervalued Overvalued O Fairly valued Suppose instead of replacing Atteric Inc.'s stock with Baque Co.'s stock, Gregory considers replacing Atteric Inc.'s stock with the equal dollar allocation to shares of Company X's stock that has a higher beta than Atteric Inc. If everything else remains constant, the required return from the portfolio would increase