NACVA Exam CVA Topic 5 Question 77 Discussion

Actual exam question for NACVA's CVA exam

Question #: 77
Topic #: 5

[All CVA Questions]

It is possible (although not very common) for a security to have a negative beta (i.e. a beta less than zero). Such a beta would indicate that:

AIt is the result of aggressive securities

BBetas for small and publicly traded companies are often unreliable

CThe returns of these securities are countercyclical to the returns of the board investment market index.

DRisk-free return would be greater

Show Suggested Answer

Suggested Answer: D

by Merlyn at Dec 08, 2023, 10:53 PM

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