By design, half of all stocks betas are positive betas and half are negative.

Name: By design, half of all stocks betas are positive betas and half are negative.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Beta measures a stock's volatility relative to the overall market; it does not imply that half of all stocks must have positive betas and half negative. Most stocks have positive betas, indicating they move in the same direction as the market. Negative beta is rare and indicates an inverse relationship with the market.

By Design, Half of All Stocks Betas Are Positive Betas