Exercise 31.2.4 If an asset has a negative beta, the CAPM says its expected rate of return

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Exercise 31.2.4 If an asset has a negative beta, the CAPM says its expected rate of return should be less than the riskless rate even if this asset is very risky with a large standard deviation. Why? (For example, we saw in Chap. 24 that IO strips earn less than the riskless rate despite their high riskiness.)

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