In Normal Market Conditions If a Security Has a Negative

question 15

Multiple Choice

In normal market conditions if a security has a negative beta:

• A) the security always has a positive return.
• B) the security has an expected return above the risk-free return.
• C) the security has an expected return less than the risk-free rate.
• D) the security has an expected return equal to the market portfolio.

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Definitions:

Payroll Check

A check issued by an employer to an employee as payment for wages or salary.

Negotiation

A discussion aimed at reaching an agreement, where parties involved resolve differences, produce a solution or find a middle ground.

Nation Bank

Likely a typographical error, but if referring to "National Bank," then it's a commercial bank chartered by the federal government in the United States.

Good Faith Purchaser

A Good Faith Purchaser is someone who buys property without knowledge of any prior claims, disputes, or flaws related to the property, thereby obtaining legal ownership.