A Security's Beta Coefficient Will Be Negative If ________

question 27

Multiple Choice

A security's beta coefficient will be negative if ________.

• A) its returns are negatively correlated with market-index returns
• B) its returns are positively correlated with market-index returns
• C) its stock price has historically been very stable
• D) market demand for the firm's shares is very low

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Definitions:

Legislative Chamber

A formal assembly or room where a legislature meets to discuss and make laws.

Majority

The greater part or number; the number of votes, seats, or individuals in a group that is more than half of the total count.

Policy Advocate

An individual or group that actively supports and promotes specific policies or legislation to influence public opinion or decision-making.

Political Campaign

An organized effort aimed at influencing the decision-making process within a specific group, often related to elections.