About the cyclical phase of the stock market

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Reference no: EM13871215

Common stock mutual fund manager, Mr. Jim, forms expectations about the cyclical phase of the stock market when actively managing his fund portfolio. In what situation might Mr. Jim want to lower the average beta of the fund that he manages? Explain Mr. Jim’s reasoning. (Note that a mutual fund portfolio is simply a portfolio of various stocks.)

Reference no: EM13871215

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