You Would Expect the Beta of Cyclical Industries to Be

question 21

Multiple Choice

You would expect the beta of cyclical industries to be ________ and the beta of defensive industries to be ________.

• A) greater than 1; less than 1
• B) less than 1; less than 1
• C) less than 1; greater than 1
• D) greater than 1; greater than 1

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Definitions:

Free Trade

An economic policy allowing goods and services to be traded across international borders with little to no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange.

Labor

The body of workers in an economy or within a specific sector or industry, often represented collectively in discussions on wages, conditions, and rights.

Management

The process of dealing with or controlling things or people, especially in a professional setting; involves planning, organizing, leading, and controlling organizational resources.

Unskilled Labor

Work that requires minimal specialized skills or training, often involving manual tasks that can be quickly learned on the job.