Expected change in the firm stock price


A company's beta is -1.5. If the overall stock market decreases by 5%, what is the expected change in the firm's stock price?

A. Share price decreases by 5%

B. Share price decreases by 6.5%

C. Share price increases by 7.5%

D. Share price decreases by 7.5%

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Finance Basics: Expected change in the firm stock price
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