What does an asset having a negative beta value imply?
A) non-existence because negative beta assets are theoretically impossible
B) a necessary component to get a fully diversified portfolio
C) a risk-reducing property when added to a portfolio
D) the higher expected return of this asset

Question

Quizplus · Accepted Answer

A negative beta value implies that the asset's returns move in the opposite direction of the overall market. Therefore, when added to a portfolio, it can help to reduce the overall risk of the portfolio.

What Does an Asset Having a Negative Beta Value Imply