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You have the following information about several potential stock investments: Company name: Beta: Vixen, Inc. 2.5 Denicorp. 1.2 Ferengi Oil. 0.8 Luke Enterprises. 0.5 a.
You have the following information about several potential stock investments:
Company name: Beta:
Vixen, Inc. 2.5
Denicorp. 1.2
Ferengi Oil. 0.8
Luke Enterprises. 0.5
a. Which of these stocks has the most market risk?
b. Which of these stocks has the least market risk?
c. If the S&P 500 index increased by 20 percent, which of these stocks would you expect to increase in value the most?
d. If the S&P 500 index declined by 20 percent, which of these stocks would you expect to decline in value the least?
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