or Goods, Inc makes goods that sell better in bad economic times. As a result, when the market is up, Inferior Goods stock tends to go down. However, when the market is down, Inferior Goods stock price increases. Based on the above, what do you think Inferior Goods Beta is? a. Greater than 1 b. Exactly 1 c. Between O and 1

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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 Inferior Goods, Inc makes goods that sell better in bad economic times. As a result, when the market
is up, Inferior Goods stock tends to go down. However, when the market is down, Inferior Goods stock
price increases. Based on the above, what do you think Inferior Goods Beta is?


a. Greater than 1
b. Exactly 1
c. Between O and 1
d. Less than O

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