is possible for a firm to have a positive beta, even if the correlation between its returns and those of another firm is negative.

Name: is possible for a firm to have a positive beta, even if the correlation between its returns and those of another firm is negative.
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Question

Quizplus · Accepted Answer

Beta measures the volatility of a stock in relation to the market. A firm can have a positive beta if its volatility is higher than the market average, even if its returns are negatively correlated with another firm.

Is Possible for a Firm to Have a Positive Beta