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What is the sign of the risk premium of a negative-beta stock? Explain. (Assume the risk premium of the market portfolio is positive.) (Select
What is the sign of the risk premium of a negative-beta stock? Explain. (Assume the risk premium of the market portfolio is positive.) (Select the best choice below.) A. Positive all stocks must have positive risk premiums. B. Indeterminate-not all negative beta stocks have negative risk premiums. C. Zero-stocks with a negative beta have zero risk premiums. D. Negative assuming the market risk premium is positive, the risk premium has the same sign as beta.
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