You are considering three stocksA, B, and Cfor possible inclusion in your investment portfolio. Stock A has

Question:

You are considering three stocks—A, B, and C—for possible inclusion in your investment 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 these from the most risky to the least risky.
b. If the return on the market increased by 12%, what change would you expect in the return for each of the If the return on the market decreased by 5%, what change would you expect in the return for each of the If you felt that the stock market was getting ready to experience a significant decline, which stock would you probably add to your Why?
e. If you anticipated a major stock market rally, which stock would you add to your Why?

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...