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Question:

Which of the following equity securities is most likely to have a beta greater than one?

A Homebuilder stock.
Explaination

Stocks of cyclical firms, such as homebuilders, tend to have high systematic risk (i.e., high beta). Stocks of noncyclical firms, such as utility or health care companies, tend to respond less to changes in systematic risk factors (i.e., they have low betas).