Question: You are considering three stocks A, B, and C for possible inclusion in your investment portfolio. Stock A has a beta of 0.80, stock B
You are considering three stocks A, B, and C for possible inclusion in your investment portfolio. Stock A has a beta of 0.80, stock B has a beta of 1.1, and stock C has a beta of 0.4.
a. Rank these stocks from the most risky to the least risky.
b.If you believed that the stock market was getting ready to experience a significant decline, which stock should you add to your portfolio?
c.If you anticipated a major stock market rally, which stock would you add to your portfolio?
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