A stock with a beta equal to −1.0 has zero systematic (or market) risk.

Name: A stock with a beta equal to −1.0 has zero systematic (or market) risk.
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Question

Quizplus · Accepted Answer

A stock with a beta of -1.0 is perfectly negatively correlated with the market, meaning it moves in the opposite direction of the market but still has systematic risk, as its performance is related to market movements.

A Stock with a Beta Equal to −1