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    Stocks - Negative Beta

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    A stock had a 12 percent return last year, a year when the overall stock market declined.
    Does this mean that the stock has a negative beta and thus very little risk if held in a portfolio? Explain.

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    Solution Preview

    Yes. A negative beta means that the stock will move against the market; ie when the ...

    Solution Summary

    The solution discusses whether the stock has a negative beta and the amount of risk if held in a portfolio.