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Out of two stocks, Apple and Coco-Cola, which stock will have a higher beta? Why is...

Out of two stocks, Apple and Coco-Cola, which stock will have a higher beta? Why is the beta of tech stock higher than the consumer-staples stock?

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Answer #1

Apple has higher beta than Coca Cola.

Beta of tech stocks are more risky than consumer staples stock because tech companies are highly leveraged . This means they have higher debt ratio . Moreover tech companies are highly affected by recession whereas consumer goods are less affected by recession.

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