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NACVA CVA Exam - Topic 6 Question 125 Discussion

It is possible (although not very common) for a security to have a negative beta (i.e. a beta less than zero). Such a beta would indicate that:
C) The returns of these securities are countercyclical to the returns of the board investment market index.
A) It is the result of aggressive securities
B) Betas for small and publicly traded companies are often unreliable
D) Risk-free return would be greater

NACVA CVA Exam - Topic 6 Question 125 Discussion

Actual exam question for NACVA's CVA exam
Question #: 125
Topic #: 6
[All CVA Questions]

It is possible (although not very common) for a security to have a negative beta (i.e. a beta less than zero). Such a beta would indicate that:

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Suggested Answer: C

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Benedict
1 month ago
I remember discussing negative beta in class, and I think it relates to how some assets perform when the market is down.
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