If the Beta Coefficient for a Firm's Stock Is Negative

Multiple Choice

If the beta coefficient for a firm's stock is negative, then

A) a decrease in the average price of all stocks is likely to be associated with a decrease in the price of the firm's stock.
B) an increase in the average price of all stocks is likely to be associated with a decrease in the price of the firm's stock.
C) a change in the average price of all stocks is likely to have little or no effect on the price of the firm's stock.
D) a calculation error must have been made, because beta cannot be negative.