Question: A securitys beta will be negative if 1) its stock price has historically been very stable 2) market demand for the firm's shares is very

A securitys beta will be negative if

1) its stock price has historically been very stable

2) market demand for the firm's shares is very low

3) its returns are positively correlated with market-index returns

4) its returns are negatively correlated with market-index returns

Choose all that apply

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Consider the CAPM. The risk-free rate is 6% and the expected return on the market is 18%. What is the expected return on a stock with a beta of 13 6% 15.6% 18% 21.6% A security's beta coefficient...

Q:

1.) According to the CAPM, what is the expected return on a security given a market risk premium of 9%, a stock beta of 0.57, and a risk free interest rate of 1%? Put the answers in decimal place....

Q:

Question 1 Beta is a measure of firm specific risk diversifiable risk unique risk market risk > Question 5 3 pts A put option on Snapple Beverage has an exercise price of $30. The current stock price...

Q:

1.The term excess return refers to ______________. a. returns earned illegally by means of insider trading b. the difference between the rate of return earned and the risk-free rate c. the difference...

Q:

Problem 1. Consider the following two stocks, A and B. Stock A has an expected return of 10%, 10% standard deviation, and a beta of 1.20. Stock B has an expected return of 14%, 25% standard...

Q:

19) What is the standard deviation of a portfolio of two stocks given Stock A has the following data: portfolio contains 40% of stock A, and the correlation coefficient between the two stocks is -23....

Q:

Question 3 (3 points) A security's beta coefficient will be negative if market demand for the firm's shares is very low its returns are positively correlated with market-index returns its returns are...

Q:

A security with normally distributed returns has an annual expected return of 18% and standard deviation of 23%. The probability of getting a return between - 28% and 64% in any one year is _____. A)...

Q:

8 A security's beta coefficient will be negative if _ A. its returns are negatively correlated with market-index returns B. its returns are positively correlated with market-index returns C. its...

Q:

Name what is the EAR if the APR is 10% with weekly B. C. D. 6, 10.38% 10.4 7% 10.51% 11.88% HPR 7Suppose your expectations rega regarding t Probabilit. State of the Economy 4-4% 0.3 Boom Normal...

Q:

Wefald Company issued $600,000, 10-year, 10 percent bonds on January 1, 2011. The bonds sold for $580,000. Interest is payable semiannually each June 30 and December 31. Record the sale of the bonds...

Q:

Give the molecular formula of this compound, showing all necessary work and calculations. Does it have the same molecular formula as either of the compounds in part a)? If so, identify which one. If...

Q:

Which of the following is an example of a nonfinancial consideration in capital budgeting? Will an investment have a positive net present value? Will an investment generate an acceptable rate of...

Q:

Draw a class diagram and its relationship based on the following statements. You can use any UML tool/software to represent your class diagram. Do NOT copy and paste your diagram, use the attachment...