A beta of -1.8 is considered: A; Defensive or aggressive cannot be defined until the beta...
A beta of -1.8 is considered:
| A; | Defensive or aggressive cannot be defined until the beta of the market is known. |
| B: | Aggressive because it is negative |
| C: | Defensive because it is negative. |
| D: | Defensive because it is less than 1 |
| E: | Aggressive because it’s absolute value is greater than 1. |
Homework Answers
The correct answer is E.
The negative sign just shows the direction of security's volatility opposite to market. Security is aggressive beacause its absolute value is greater than 1.
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