What Is Implied When an Asset Has a Negative Beta

question 52

Multiple Choice

What is implied when an asset has a negative beta value?

• A)It implies that the asset can't exist because negative beta assets are theoretically impossible.
• B)It implies that the asset is a necessary component for achieving a fully diversified portfolio.
• C)It implies that the asset is a risk-reducing property when added to a portfolio.
• D)It implies that the asset has a higher expected return.

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Definitions:

Advantages and Disadvantages

The positive and negative aspects or consequences of a situation, decision, item, or policy.

Negative Cognitive Triad

A cognitive therapy concept where an individual harbors negative views about the self, the world, and the future.

Depression

A mood disorder that causes persistent feelings of sadness and loss of interest, affecting daily functioning.

Psychosocial Contributors

Factors in an individual's psychological development and social environment that contribute to their mental health and behavior.