Betas and risk rankings Personal Finance Problem You are considering three stocks $-$ A$,$ B$,$ and C $-$ for possible inclusion in your investment portfolio. Stock A has a beta of $1\mathrm{.}2,$ stock $B$ has a beta of $1\mathrm{.}6,$ and stock $C$ has a beta of $-0\mathrm{.}4.$

a$.$ Rank these stocks from the most risky to the least risky.

b$.$ If you believed that the stock market was getting ready to experience a significant decline, which stock should you add to your portfolio?

c$.$ If you anticipated a major stock market rally, which stock would you add to your portfolio?

a$.$ Which stock is the most risky one? $($Select the best answer below.$)$

A$.$ Stock A

B$.$ Stock B

C$.$ Stock C

Which stock is the least risky one? $($Select the best answer below.$)$

A$.$ Stock C

B$.$ Stock A

C$.$ Stock B

b$.$ If you felt that the stock market was getting ready to experience a significant decline, which stock should you add to your portfolio? $($Select the best answer below.$)$

A$.$ Stock A

B$.$ Stock C

C$.$ Stock B

$\text{'}$c$.$ If you anticipated a major stock market rally, which stock would you add to your portfolio? $($Select the best answer below.$)$

A$.$ Stock B

B$.$ Stock A

C$.$ Stock C