Question $6$

$0\mathrm{.}5$ Points

Question $6$

You have the following data on three stocks:

Stock

Standard Deviation

Beta

A

$20\%$

$1\mathrm{.}00$

B

$14\%$

$0\mathrm{.}64$

C

$25\%$

$1\mathrm{.}40$

You are managing a well diversified portfolio $($Steve Co Funds$)$ and MUST be fully invested at all times.$$You are expecting the stock market to significantly increase$/$rise during the next year due to improving economic conditions.$$Which one of the above stocks would you add to your portfolio to help your portfolio outperform$$the stock market in the coming year?

Stock A

Stock B

Stock C

You would be equally happy adding Stock A$$or$$Stock B

You would be equally happy adding Stock A$$or$$Stock C