Design-pro is a firm that has a negative beta. Its equity risk premium is __________ and investors ______________shares of stock of Design-pro as part of their portfolio because this ___________.

Select one:

a. negative; would not want to hold; will increase the variability of their portfolio.

b. negative; would want to hold; will decrease the variability of their portfolio by providing a hedge against recession risk

c. positive; would not want to hold; increase the variability of their portfolio.

d. sometimes positive and sometimes negative and may increase the variability of their portfolio.

e. positive; would want to hold; does not increase the variability of their portfolio.