A friend tells you about a mutual fund that can protect you on the downside.In other words,in bear markets the return on the mutual fund does not fall as much as the market's return.The fund's Beta is:
A) Greater than one
B) Equal to one
C) Less than one

Question

Quizplus · Accepted Answer

If the mutual fund's returns fall by less when the market falls, then the fund's characteristic line is relatively flat and the Beta is less than one.

A Friend Tells You About a Mutual Fund That Can