Which of the stocks would you classify as defensive? Which would be classified as aggressive? Why? In a boom, which stock you would recommend to invest? In a recession, which stock you would recommend to invest?

Assume that you are currently holding a well-diversified portfolio, which of the three stocks would be a good candidate to include in a well-diversified portfolio? (you are well-diversified investor). Hint: a well-diversified investor does not concern about unique risk but the market risk which is measured by beta?

Stock	CAPM Return (Need to Calculate)	>, =, <	Average Returns	Over/Under/Correctly Priced	Recommendations
			(From Table 1)		(Buy/Sell)
Walmart	0.627778		0.8081
Mcdonalds	0.563273		1.0438
Costco	0.889870		1.3157