Discuss whether the following statement is true or false:
It is possible for a stock to have an expected rate of return that is negative.

Question

Quizplus · Accepted Answer

In a situation where the Beta of a stock is negative,it means that the market and the stock prices are having a negative correlation.This implies that when the markets rate increases,the stock rate moves down leading to a negative rate of return for a particular period.Usually,this occurs when the stock has a high degree of negative correlation.

Discuss Whether the Following Statement Is True or False