$1$ What is beta?$2-$ Stock ABC has a beta of $1\mathrm{.}25$ and Stock XYZ has a beta of $0\mathrm{.}55.$ Which stock would you buy if you knew the stock market was going to drop by $20\%$ over the next month? Also, briefly explain why$\mathrm{.}3$ What is the relationship between the market risk of a stock and its expected return?$4$ What is the CAPM? What does it tell you?$5$ What is the difference between beta and standard deviation?