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:

Vertebral Column

The flexible and supportive spine, composed of a series of bones called vertebrae, extending from the skull to the small of the back.

Abdominal Wall

The abdominal wall is comprised of muscles and tissues that enclose the abdominal cavity, supporting and protecting the organs within.

Internal Oblique

A muscle in the abdominal wall that acts to compress the abdomen and flex the spine.

Coccygeus

A small muscle located in the pelvic area, playing a part in supporting the pelvic organs.