Question: Given market risk premium is 9 % , risk free rate is 5 % , and the average risk aversion is 2 . A security

Given market risk premium is 9%, risk free rate is 5%, and the average risk aversion is 2. A security's beta coefficient will be positive if ____________.
Group of answer choices
market demand for the firm's shares is very low.
its returns are negatively correlated with market-index returns.
its returns are positively correlated with market-index returns.
its stock price has historically been very stable.

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