Assume the betas for securitiesA, B, and C are as shownhere:

Security Beta

A 1.39

B 0.78

C 0.94

a. Calculate the change in return for each security if the market experiences an increase in its rate of return of 13.5 % 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 10.6 % 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 economicdownturn? Explain.