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Can a Risky Asset Ever Have a Negative Beta? (Hint

question 4

Essay

Can a risky asset ever have a negative beta? (Hint: Yes) What would the expected return be on such an asset? Why would you want to buy such an asset?


Definitions:

Obtainable

Capable of being acquired or secured.

Parallelism

The use of components in sentences that are grammatically the same, or similar in their construction, sound, meaning, or meter.

Consistency

The quality of maintaining a uniform, stable, and predictable character or performance over time.

Concise Language

The use of few words to convey an idea effectively without unnecessary elaboration.

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