Assume the betas for securities$$ A$,$ B$,$ and C are as shown$$ here: LOADING....

a$.$ Calculate the change in return for each security if the market experiences an increase in its rate of return of $12\mathrm{.}3\%$ over the next period.

b$.$ Calculate the change in return for each security if the market experiences a decrease in its rate of return of $9\mathrm{.}3\%$ over the next period.

c$.$ Rank and discuss the relative risk of each security on the basis of your findings. Which security might perform best during an economic$$ downturn? Explain.

Security Beta

A $1\mathrm{.}58$

B $0\mathrm{.}61$

C $-0\mathrm{.}16$