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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
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 1.3, stock B has a beta of 1.5, and stock C has a beta of -0.2. 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.) O A. Stock C OB. Stock A O C. Stock B Which stock is the least risky one? (Select the best answer below.) A. Stock A OB. Stock C OC. 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.) O A. Stock A B. Stock B O C. Stock C c. If you anticipated a major stock market rally, which stock would you add to your portfolio? (Select the best answer below.) O A. Stock A B. Stock C O C. Stock B
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