header bg

Scan QR code or get instant email to install app


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

A Homebuilder stock.

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).

Related Information


Leave a Reply

Your email address will not be published. Required fields are marked *