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Stock Beta SKT 0.65 ...

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Question

Finance

Stock

Beta

SKT

0.65

COST

0.90

SU

1.42

AMZN

1.57

V

0.94

Consider the assets in the table with their respective beta coefficients to answer the following questions:

a. Which of the assets represents the most sensitive to fluctuations or changes in market returns and why? What impact in terms of risk and return would this asset have if you add it to an investment portfolio in a higher proportion than all other assets?

b. Which of the assets represents the least sensitive to fluctuations or changes in market returns and why? What impact in terms of risk and return would this asset have, if you add it to an investment portfolio in a greater proportion than all other assets?

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