Question

Which of the following sectors has the highest beta? Food Utilities Automobiles Drugs, soap, perfumes and tobacco
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Beta refer to the volatility of a stock or sector i.e. how stock or sector move when market move. Beta of market is generally one. Market movement depend upon the economic condition of the country. This mean that if country economic condition is good then market will be positive and vice cersa. Food, utility , Drug , soap, perfumes and tobacco sector may not affect much due to econmic condition of the country but Automobile secot is very much dependent on the economy i.e. if economy perform good then demand for automobile sector is good and vice versa.

So We can say that Automobile sector has high beta .

Add a comment
Know the answer?
Add Answer to:
Which of the following sectors has the highest beta? Food Utilities Automobiles Drugs, soap, perfumes and...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT