In Normal Market Conditions If a Security Has a Negative

question 7

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.
• E)Both A and B.

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Definitions:

Careless and Irresponsible

Exhibiting a lack of concern or attention to duties and obligations, often resulting in harm or risk.

Conscientiousness

A personality trait characterized by diligence, carefulness, and the desire to do a task well, often associated with high levels of responsibility.

Big Five Personality Traits

are five broad dimensions of personality used to describe human character traits: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Responsible, Dependable, Careful

describes attributes of an individual who is reliable, can be trusted to complete tasks, and takes precautions to avoid mistakes.