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Can a risky asset have negative beta coefficient?

Personal Finance & Money Asked on May 26, 2021

I have a question from my tutorial asking whether

Can a risky asset have negative beta coefficient?

I can only think of how this is possible only if risk-free rate is more than the expected returns, are there any other reasons for such?

One Answer

Negative beta means that the security moves in the opposite direction of the index that it's being compared to.

Correct answer by Bob Baerker on May 26, 2021

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