Final answer:
The beta of cyclical industries is greater than 1 and the beta of defensive industries is less than 1.
Step-by-step explanation:
The correct answer is A. positive correlation; negative correlation. In finance, Beta measures the volatility or systematic risk of a stock or portfolio in relation to the overall market. Cyclical industries, such as airlines or automotive, tend to have a positive correlation with the overall market, meaning their beta is greater than 1. Defensive industries, such as utilities or consumer staples, tend to have a negative correlation with the overall market, resulting in a beta less than 1.