Is Positive Beta Better Than Negative Beta?
A beta factor represents risk in a financial instrument or commodity. The risk involved here is volatility risk, which will give you an understanding of how the security is expected to move in the market. Understanding volatility can help you build portfolios that will meet investment goals.
• Explain the reasons for changes in beta and explain if one should be more concerned with a negative or positive factor. Be sure to reference volatility.Provide an example of negative beta.
APA formatting.