Question
Question content area top Part 1 Betas and risk rankingsPersonal Finance ProblemYou are considering three stocks A, B, and C for possible inclusion in your
Question content area top
Part 1
Betas and risk rankingsPersonal Finance ProblemYou are considering three stocks
A, B, and C
for possible inclusion in your investment portfolio. Stock A has a beta of
1.1,
stock B has a beta of
1.6,
and stock C has a beta of
0.4.
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 Upper B
Stock B
B.Stock Upper A
Stock A
C.Stock Upper C
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