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.

Indeterminatenot all negative beta stocks have negative risk premiums.

B.

Negativeassuming the market risk premium is positive, the risk premium has the same sign as beta.

C.

Positiveall stocks must have positive risk premiums.

D.

Zerostocks with a negative beta have zero risk premiums