koba

Beta has nothing to do with Sharpe Ratio, the forumla of SR is (E(R)-RFR)/st dev. Where does beta fits it?

A stock with negative beta can have a positive expected return ONLY if the expected return on the mkt (or market risk premium) is negative. (look at CAPM formula).

Anytime I am unsure about something, I look back at the formula to find a solution. It helps me understand.