The stock of ABC Inc has a beta of 80 The market rate of return is expected to increase by by 5 Beta predicts that ABC stock should?

If ABC Inc has a beta of 0.80, it indicates that the stock is less volatile than the market. With an expected market return increase of 5%, ABC's stock is predicted to rise by approximately 4% (0.80 x 5%). This relationship suggests that while ABC is expected to benefit from the overall market increase, its gains will be more subdued compared to higher-beta stocks.