Tag: beta
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Does this mean that the stock has a negative beta and thus very little risk if held in a portfolio? Explain.
A stock had a 12 percent 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. 8-7 If investors’ aversion to risk increased, would the risk premium on a high-beta stock increase by…