What characteristic is typical of an investment with a negative beta?

An investment with a negative beta is characterized by an inverse relationship with the overall market. This means that when the market rises, the value of the investment is expected to decline, and vice versa. This behavior is typical of certain types of investments, particularly those that are considered safe havens or counter-cyclical investments—such as certain bonds or commodities—especially during economic downturns.

Option C correctly identifies that investments with negative betas typically represent stable industries. Such industries often remain unaffected or even benefit from declining market conditions, making them less correlated with the fluctuations of the broader market. This characteristic makes them appealing to investors seeking to hedge against market volatility.

Other options are less applicable. For instance, investments that generally move in tandem with the market would have a positive beta, while those expected to outperform other volatile stocks typically have high positive betas due to their higher risk and potential for higher returns. Similarly, negative beta investments are generally not confined to stable industries alone; they may also represent unique scenarios rather than being predominantly located in tech sectors.