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using the stocks from above question 3 Stock A o (in %) 20 B 0.5 3. The risk-free rate is 0% and the expected return

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Stock A o (in %) 20 B 0.5 3. The risk-free rate is 0% and the expected return on the market is 10%. You are given the same stocks as in Q 2. Assuming, as in Q 2(b), that you hold the stock as part of a well-diversified portfolio, which stocks would you buy if the expected return on the stocks were as below: Stock Expected return in % MOA co 2. Given the information below, sort the stocks in the order of the expected return you would need from them if you had to hold them: (a) individually (i.e., the stock would form your entire portfolio). (b) as part of a large, well-diversified portfolio resembling the market. Stock o (in %) B A 20 0.5 B 10 1 C 9 -.5 9 -5 52 3. The risk-free rate is 0% and the expected return on the market is 10%. You are given the same stocks as in Q 2. Assuming, as in Q 2(b), that you hold the stock as part of a well-diversified portfolio, which stocks would you buy if the expected return on the stocks were as below: Stock Expected return in % X FE

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