Measuring systematic risk: Susan is expecting the returns on the market portfolio to be negative in the

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Measuring systematic risk: Susan is expecting the returns on the market portfolio to be negative in the near term. Since she is managing a stock mutual fund, she must remain invested in a portfolio of stocks. However, she is allowed to adjust the beta of her portfolio.

What kind of beta would you recommend for Susan’s portfolio?

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Fundamentals Of Corporate Finance

ISBN: 9781119795438

5th Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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