There are few, if any, real companies with negative betas. But suppose you found one with beta equals to $-0\mathrm{.}25.$

a$-$ How would you expect this stock rate of return to change if the overall market rose by an extra $5\%?$ What if the market fell by an extra $5\%?$

b$-$ You have $$1$ million invested in a well$-$diversified portfolio of stocks. Now you receive an additional $$20,000$ legacy. Which of the following actions will yield the safest overall portfolio return?

Invest $$20,000$ in Treasury bills

Invest $$20,000$ in stocks with beta of $1$

Invest $$20,000$ in the stocks with beta of $-0,25$