As a group project, use th.e following stocks to develop a portfolio that has an average beta equal to 1.0. You must include all stocks, but the weighting is yours to develop.

Given what you have learned about beta as a measure of volatility, have each member of the group individually adjust the allocation of the portfolio in response to an anticipated market decline. Was each member's adjustment appropriate? What was the rationale behind the adjustments? Give a brief presentation on how your group allocated their original portfolio and then defend each member's adjustments in their revised portfolios.

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Stock Name Sector Beta SAS Corp. Financial 0.90 Dipper Group Industrial 0.65 Startech, Inc. Technology 2.05 Robust Corp. Consumer Goods 0.45 Sunlight, Inc. Energy -0.20 Medi-serve Group Health Care 1.10