Asked by
Saryah Winborne
on Dec 02, 2024
Verified
A classic example of a negative beta investment is the stock of a:
A) steel mill because the industry is subject to intense international competition.
B) gold mining company because it's profitability runs opposite to the state of the economy.
C) financial services company because it's in the stock business itself.
D) company in the defense industry because war is always a possibility.
Negative Beta
A measurement of a stock's volatility indicating that it moves in the opposite direction of the overall market.
Gold Mining Company
A company that specializes in the exploration and extraction of gold from mines or ore bodies.
Industry Competition
The rivalry among companies within the same industry to gain more market share, customers, or profits.
- Comprehend beta values and their representation of the level of systematic risk associated with a security.
Verified Answer
SL
Learning Objectives
- Comprehend beta values and their representation of the level of systematic risk associated with a security.