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 has

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 1.40 and stock C has a beta of -0.30.

a. Rank thses stocks from the most riskly to the least risky.

b. If the return on the market portfolio increased by 12%, what change would you expect in the return for each of the stocks?

c. If the return on the market portfolio decreased by 5%, what change would you expect in the return for each of the stocks?

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