The values of beta coefficients of securities are ________.
A) always positive
B) always negative
C) always between positive 1 and negative 1
D) usually positive but are not restricted in any particular way

Question

Quizplus · Accepted Answer

Beta coefficients can be positive, negative or zero, meaning that the returns of the security move in the same direction, opposite direction or independent of the market returns. There is no restriction on the possible values of beta coefficients, so option D is the correct choice.

The Values of Beta Coefficients of Securities Are ________