Because insurance pays off in bad times,it is generally a negative-beta asset.

Name: Because insurance pays off in bad times,it is generally a negative-beta asset.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A negative-beta asset is one that tends to move in the opposite direction of the market. Insurance is often purchased to mitigate risks in bad times, so it tends to perform well when the overall market is performing poorly. This makes it a negative-beta asset.

Because Insurance Pays Off in Bad Times,it Is Generally a Negative-Beta