Question: Assume the single-factor APT model is applied to a security that has a negative factor beta. The security will: always have a positive rate of
Assume the single-factor APT model is applied to a security that has a negative factor beta. The security will:
always have a positive rate of return.
have an expected return greater than the risk-free rate.
have an actual return that is less than the risk-free rate.
have an expected return equal to the market rate of return.
have an actual rate of return that can be positive, negative, or zero.
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