Question

A stock had a 8.47% return last year, a year when the overall stock market declined....

A stock had a 8.47% return last year, a year when the overall stock market declined. Does this mean that the stock has a negative beta and thus very little risk if held in a portfolio? Explain

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Answer #1

During a stock has negative beta it determines as revenues would ought to reasonably be required to go up in the eventuality during the additional stocks. returns implied probably slumping Considering that in 1 year Me merchandise, pay Accretion while the market weakened, does. intends such that the stock has a negative beta Yet at the stock is positive , stock in a presented time has to counter the overall business So, it doesn't mean that if a stock has negative beta, there Is a really tiny danger if occurred to be maintained in a collection .

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