Stock X has an expected return of 10% and a standard deviation of 30%. Stock Y has an expected return of 14% and a standard deviation of 40%. The correlation coefficient between Stocks And Y is 0.3. Stock X has a beta of .9 and Stock Y has a beta of 1.20. Portfolio is invested 40% in Stock X and 60% in Stock Y.

e. Will your portfolio likely outperform or underperform the market in a period when stocks are rapidly falling in value? Why?