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Assume that the capital asset pricing model (CAPM) holds. Use the information below about four companies to answer the questions that follow. Answer the questions

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Assume that the capital asset pricing model (CAPM) holds. Use the information below about four companies to answer the questions that follow. Answer the questions from the perspective of an investor holding a diversified portfolio. (a) Out of the four companies, in an economic recession, you would expect to perform the best. (b) Company W stock can be described as a(n) stock. (c) Which company would a risk averse investor be most likely to want to add to their portfolio? Select one alternative Company Y Company Z Company W Company X Not possible to tell without further information

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