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Betas and Risk Rankings. You are considering three stocks- A, B, and C- for possible inclusion in your investment portfolio. Stock A has a beta

Betas and Risk Rankings. You are considering three stocks- A, B, and C- for possible inclusion in your investment portfolio. Stock A has a beta of 0.80, stock B has a beta of 1.40, and stock C has a beta of -0.30.

A. If the return on the market portfolio increased by 12%, what change would you expect in the return for each stock?

B If the return on the market portfolio decreased by 5%, what change would you expect in the return for each stock?

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