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

Companies that sell household products and food are considered to be non-cyclical or defensive because people will continue to buy these products regardless of the economic conditions. Therefore, such companies have low betas, which means they are less sensitive to market fluctuations.

Companies That Sell Household Products and Food Have Very Little