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Personal Finance Problem | LG 5 P8-22 Betas and risk rankings You are considering three stocks-A, B, and C-for possible inclusion in your investment portfolio.
Personal Finance Problem | LG 5 P8-22 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 Chas a beta of -0.30. a. Rank these stocks from the most risky to the least risky. b. If the return on the market portfolio increased by 12%, what change would you expect in the return for each stock? c. If the return on the market portfolio decreased by 5%, what change would you expect in the return for each stock? d. If you believed that the stock market was getting ready to experience a significant decline, which stock would you probably add to your portfolio? Why? e. If you anticipated a major stock market rally, which stock would you add to your portfolio? Why
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