If there is a security with a negative beta for example -05


If there is a security with a negative beta, for example -0.5, what can you say about the expected return of the security based on the Capital Asset Pricing Model (CAPM), or the Security Market Line (SML)? Would it be greater or smaller than the risk-free interest rate? How can you explain your answer intuitively?

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Financial Management: If there is a security with a negative beta for example -05
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