Question

An industry is likely to have a low beta if the: stream of revenues within that industry is less volatile than the market. economy is in a recessionary period. market for its goods is highly affected by the market cycle. number of firms within the industry is fairly constant. industry tends to use a lot of debt financing.

Answer 1

stream of revenues within that industry is less volatile than the market.

Step-by-step explanation:

Systemic risk is measured by beta. The higher beta is, the higher the systemic risk and the higher the compensation demanded for by investors

an industry with less volatilty would have a low beta

higher debt and an industry affected by business cylce would have a higher beta