6 Which cf the following firms has the smailest beta a WalMa

6 Which cf the following firms has the smailest beta? a. Wal-Mart (discount retail store) b. Vale (commodity/mining c. Abercrombie & Fitch (Apparel) d. Pfizer (Pharmaceutical) e. Apple (Tech)

Beta will be smallest if the company is not in a sector which is technology or R&D dependent. Hence d and e gets ruled out. It should not be in a cyclical industry. Hence b and c gets ruled out

Therefore answer is a