Betas and risk rankingsPersonal Finance ProblemYou areconsidering thre...

Betas and risk rankingsâ€ƒâ€ƒâ€ƒPersonal Finance Problemâ€ƒâ€ƒâ€ƒYou are considering three stocks A, B, and C â€” for...

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Betas and risk rankingsâ€ƒâ€ƒâ€ƒPersonal Finance Problemâ€ƒâ€ƒâ€ƒYou areconsidering three stocks A, B, and C â€” for possible inclusion inyour investment portfolio. Stock A has a beta of 1.5, stock B has abeta of 1.2, and stock C has a beta of âˆ’0.3.
a. Rank these stocks from the most risky to the least risky.
b.â€ƒâ€ƒIf you believed that the stock market was getting ready toexperience a significant decline, which stock should you add toyour portfolio?
c.â€ƒâ€ƒIf you anticipated a major stock market rally, which stockwould you add to your portfolio?
a.â€ƒâ€ƒWhich stock is the most risky one? (Select the best answerbelow.) A. Stock Upper AStock A B. Stock Upper BStock B C. StockUpper C

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3.6 Ratings (323 Votes)

a Beta is used to measure the risk associated with the investments Investment with the beta of more than one indicates risk more than the market and high voiatility with the stocks return In the See Answer

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