• What is the meaning of the terms beta and capital asset pricing model? Select three stocks from the listing of the Dow Jones Industrial Average Stock Betas from the table below.List these three stocks, along with their corresponding beta. Which one of the three stocks in your list is least risky? Why? Which one of the three stocks in your list is most risky? Why?

Company Beta Company Beta

3M Company 0.84 Home Depot 0.79

Alcoa 2.12 Intel 1.15

American Express 2.08 International Business Machines 0.71

AT&T 0.62 Johnson & Johnson 0.60

Bank of America 2.31 JP Morgan 1.12

Boeing 1.32 Kraft Foods 0.55

Caterpillar 1.85 McDonald