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Nike has a beta of 2.3x and Adidas has a beta of 1.8x. Which stock would...

Nike has a beta of 2.3x and Adidas has a beta of 1.8x. Which stock would you prefer to own when the S&P 500 Index is down 6%?
​a.​Nike
​b.​Adidas
​c.​Both would produce the same return in a down market
​d.​Not enough information to solve

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Answer #1

Adidas, because as it has a smaller beta, it will fall less compared to Nike which has a higher beta

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