Companies that sell household products and food have very little relation to the state of the economy because such basic needs do not go away. These stocks tend to have ________ betas.

Question

Quizplus · Accepted Answer

Stocks with low betas are less sensitive to market fluctuations and tend to have a more stable performance. Since household products and food are basic needs that people will continue to purchase regardless of the state of the economy, these stocks are considered to be more defensive and less risky, resulting in a low beta.

Companies That Sell Household Products and Food Have Very Little