Question

Common shares of which of the following issuers are likely to have a Beta coefficient much lower than +1?A. Tool and die makerB. Pharmaceutical manufacturerC. Public utilityD. Electronics manufacturer

Answer 1

Answer:

C

Explanation:

Beta measures the volatility of a stock. The higher the beta, the higher the volatility and the higher the risk of the stock.

Public utility would most like have a beta less than 1 because it would most likely not be affected by business cycles