Why Should an Investor Invest in a Negative-Beta Share Knowing

question 39

Essay

Why should an investor invest in a negative-beta share knowing that it will have an expected return lower than the risk-free rate?

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Definitions:

Ideology

A system of ideas and ideals, especially one that forms the basis of economic or political theory and policy.

Elites

Denotes a small, privileged group in society that holds a significant amount of power, wealth, or status compared to the broader population.

Class Consciousness

Awareness by a social class of its own interests, conditions, and the need for collective action to bring about social change.

Objective Economic

Relating to economic phenomena that can be quantitatively measured and analyzed without bias or subjective interpretation.