Question

Companies will generally have a ____ beta if their: Multiple Choice high; sales are high compared to other firms in th...

Companies will generally have a ____ beta if their:

Multiple Choice

  • high; sales are high compared to other firms in their industry.

  • low; stock price is relatively low.

  • high; sales are growing at a steady rate of increase.

  • high; sales are highly dependent on the market cycle.

  • low; production costs are primarily fixed in nature.

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Answer #1

Ans high; sales are highly dependent on the market cycle.

Companies will generally have a high beta if their sales are highly dependent on the market cycle.

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