Rank these stock from the riskiest to the least risky

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Reference no: EM131624018

Please respond with a paragraph to each question

Stock A has a beta of 0.80, stock B has a beta of 1.40, and stock C has a beta of -0.30.

Rank these stock from the riskiest to the least risky. Explain your reasoning and back up your explanation with research.

If the return on the market portfolio increases by 12%, what change in the return for each of the stocks would you expect? Explain your answer.

If the return on the market portfolio declines by 5%, what change in the return for each of the stocks would you expect? Explain your answer.

If you felt the stock market was about to experience a significant decline, which stock would you be most likely to add to your portfolio? Why?

If you anticipated a major stock market rally, which stock would you be most likely to add to your portfolio? Why?

Reference no: EM131624018

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