What is the sales rep saying about the fund beta

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Problem 1: A sales representative for a popular mutual fund is telling you why you should invest in their fund instead of the market portfolio. The sales rep claims that their fund is as good as the market when the market rises, but that it provides down-side protection. In other words, it doesn't fall as much as the market when the market falls. What is the sales rep saying about the fund's beta?

Option 1: The beta is less than 1.
Option 2: The beta is equal to 0 when the market rises and less than 0 when the market falls.
Option 3: The beta is equal to 1 when the market rises and negative when the market falls.
Option 4: The beta is negative.
Option 5: The beta is equal to 1 when the market rises and less than 1 when the market falls.

Reference no: EM132906636

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