You have closely observed stock market returns over the last year, and believe that the annual

expected return of the market portfolio is $13\%.$ The risk$-$free rate is $5\%,$ and you own a share of

stock in a manufacturer of chemicals, Hawkins Labs Inc., which you believe has an expected

return of $16\mathrm{.}2\%.$ If the stock market $($i$.$e$.,$ the market portfolio$)$ actually ends up going down by

$10\%$ this year, by how much would you expect your share of stock in Hawkins labs to go up or

down?

A$.$ Hawkins stock would be expected to fall by $18\mathrm{.}2\%$

B$.$ Hawkins stock would be expected to fall by $14\mathrm{.}0\%$

C$.$ Hawkins stock would be expected to fall by $8\mathrm{.}6\%$

D$.$ Hawkins stock would be expected to rise by $8\mathrm{.}6\%$

E$.$ Hawkins stock would be expected to rise by $16\mathrm{.}2\%$