Question
There are few, if any, real companies with negative betas. But suppose you found one with = 0.12. a-1. How would you expect this stock's
There are few, if any, real companies with negative betas. But suppose you found one with = 0.12. a-1. How would you expect this stock's rate of return to change if the overall market rose by an extra 6%? (A negative answer should be indicated by a minus sign. Input your answer as a percent rounded to 2 decimal places.)
a-2. How would the stock's rate of return change if the overall market fell by an extra 6%? (A negative answer should be indicated by a minus sign. Input your answer as a percent rounded to 2 decimal places.)
b. You have $1.0 million invested in a well-diversified portfolio of stocks. Now you receive an additional $33,000 bequest. Which of the following actions will yield the safest overall portfolio return?
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