You are considering three stocks A, B, and C for possible inclusion in your investment portfolio. Stock A has a beta of 0.80, stock B has a beta of 1.1, and stock C has a beta of 0.4.

a. Rank these stocks from the most risky to the least risky.

b. If the return on the market portfolio increased by 12%, what change would you expect in the return for each of the stocks?

c. If the return on the market portfolio decreased by 5%, what change would you expect in the return for each of the stocks?

d. If you believed that the stock market was getting ready to experience a significant decline, which stock would you probably add to your portfolio? Why?

e. If you anticipated a major stock market demand, which stock would you add to your portfolio? Why?

Please provide formulas and all work shown.