A stock with a beta that is less than 1.0 or even a negative beta is called a defensive stock.

Name: A stock with a beta that is less than 1.0 or even a negative beta is called a defensive stock.
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Question

Quizplus · Accepted Answer

This statement is true. A stock with a beta less than 1.0 or negative beta indicates that the stock is less volatile than the market, which means it is less likely to be affected by market ups and downs. Such stocks are considered defensive as they tend to perform better during market downturns.

A Stock with a Beta That Is Less Than 1