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Stock A has a beta of 0.81, stock B has a beta of 1.39, and stock C has a beta of -0.31. a. Rank

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Stock A has a beta of 0.81, stock B has a beta of 1.39, and stock C has a beta of -0.31. a. Rank these stocks from the most risky to the least risky. b. If the return on the market portfolio increases by 11.8%, what change in the return for each of the stocks would you expect? c. If the return on the market portfolio declines by 5.8%, what change in the return for each of the stocks would you expect? d. If you felt the stock market was about to experience a significant decline, which stock would you be most likely to add to your portfolio? Why? e. If you anticipated a major stock market rally, which stock would you be most likely to add to your portfolio? Why? a. Rank these stocks from the most risky to the least risky. (Select from the drop-down menus.) Most Risky Moderately Risky Stock B A C ... Least Risky b. If the return on the market portfolio increases by 11.8%, what change in the return for each of the stocks would you expect? The impact on asset A's return is %. (Round to one decimal place.)

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