Why should an investor invest in a negative-beta stock knowing that it will have an expected return lower than the risk-free rate?
What will be an ideal response?
Answer: An investor will invest in a negative-beta stock as a part of a diversified portfolio to reduce overall market risk of the portfolio.
Business
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The journal entry for the receipt of a cash payment on common stock subscriptions would include
a. debiting Cash and crediting Common Stock Subscriptions Receivable. b. debiting Cash and crediting Common Stock. c. debiting Common Stock and crediting Common Stock Subscriptions Receivable. d. debiting Common Stock Subscriptions Receivable and crediting Common Stock.
Business
A secured creditor may repossess the debtor's property and sell it to pay the debt
Indicate whether the statement is true or false
Business