Can Beta of a Stock be 0? And can Beta be Negative?

12manage is hiring Management/MBA Students!


 
Capital Asset Pricing Model > Best Practices Premium

Can Beta of a Stock be 0? And can Beta be Negative?
Melvin
Question on CAPM: I know that in the CAPM Model the Beta for a stock can be less than one. If the company has a Beta of 0.33, then it is supposed to be 3 times less risky than the overall market. But can Beta also be zero? And can it be negative?
 

 
Can Beta be zero ?Sign up
Pereira
Assuming a Beta=0 is the same as to say that the r...
 

 
Stock Beta =<0Sign up
CSB Nair
The beta can well be 0 or negative if the expected...
 

 
Stocks with a negative Sign up
Thomas
A company with a of 1.000 has the same expected ...
 

 
Beta of a stockSign up
Harold
A beta of one means the stock moves with th...
 

 
GoldSign up
Walter
Gold-related stocks are typically beta-negative....
 

 
What about cash??Sign up
Bikash
Assets with beta 0 are same as risk-free assets an...
 

 
CAPMSign up
Liaqat Ali
It is the theory that relates the expected return ...
 

 
CAPMSign up
Anna
Risk-free security does not necessarily mean zero ...
 

 
Gold Industry may have a Negative BetaSign up
Ghanshyam, Member
If beta < 0 then the investment's returns will mov...
 

 
Inflation in CAPMSign up
Mukela Namushi Mubano, Member
I totally agree with @
 

 
Beta Can Be Negative: Gun CompaniesSign up
nitish dwivedi, Member
Friends, at the time of war when all companies pro...
 

 
Beta Does Not Imply No Risk!Sign up
SCOTT DIAMOND, Member
While I would agree that safe investments have a l...
 

 
 

  Do you wish to study further? You can learn more from the summary, forum, discussions, lessons, courses, training, instructions, expert tips, best practices and education sources. Register.  


Special Interest Group Leader

You here


More on Capital Asset Pricing Model
Summary
Forum

Best Practices
  • Can Beta of a Stock be 0? And can Beta be Negative?

Expert Tips

Resources



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2018 12manage - The Executive Fast Track. V14.1 - Last updated: 23-6-2018. All names of their owners.