Based on the data in Table 10.6, estimate which of the following investments you expect to lose the most in the event of a severe market down turn: 

(1) A $2000 investment in Hershey, 

(2) a $1500 investment in Macy’s, 

(3) a $1000 investment in Caterpillar.

Table 10.6

Transcribed Image Text:

TABLE 10.6 Company PG&E General Mills Newmont Mining The Hershey Company McDonald's Clorox Pepsico Wal-Mart Stores Procter & Gamble Coca-Cola Altria Group Amgen Johnson & Johnson Nike Southwest Airlines Kroger Starbucks Whole Foods Market Intel Microsoft Pfizer Apple Amazon.com Macy's Foot Locker Alphabet (Google) Molson Coors Brewing Harley-Davidson Yahoo! salesforce.com Marriott International Walt Disney Coach Betas with Respect to the S&P 500 for Individual Stocks (based on monthly data for 2010-2015) Cisco Systems Williams-Sonoma Staples Oracle Hewlett-Packard J. C. Penney Wynn Resorts Ltd. Ryland Group Caterpillar United States Steel General Motors Netgear Tiffany & Co. Autodesk Ethan Allen Interiors Advanced Micro Devices Sotheby's Ticker PGE GIS NEM HSY MCD CLX PEP WMT PG KO MO AMGN JNJ NKE LUV KR SBUX WFM INTC MSFT PFE AAPL AMZN M FL GOOG TAP HOG YHOO CRM MAR DIS COH CSCO WSM SPLS ORCL HPQ JCP WYNN RYL CAT X GM NTGR TIF ADSK ETH AMD BID Industry Utilities Packaged Foods Gold Packaged Foods Restaurants Household Products Soft Drinks Superstores Household Products. Soft Drinks Tobacco Biotechnology Pharmaceuticals Footwear Airlines Food Retail Restaurants Food Retail Semiconductors Systems Software Pharmaceuticals Computer Hardware Internet Retail Department Stores Apparel Retail Internet Software and Services Brewers Motorcycle Manufacturers Internet Software and Services Application Software Hotels and Resorts Movies and Entertainment Apparel and Luxury Goods Communications Equipment Home Furnishing Retail Specialty Stores Systems Software Computer Hardware Department Stores Casinos and Gaming Homebuilding Construction Machinery Steel Automobile Manufacturers Communications Equipment Apparel and Luxury Goods Application Software Home Furnishings Semiconductors Auction Services Equity Beta 0.26 0.30 0.32 0.33 0.39 0.40 0.42 0.49 0.52 0.52 0.54 0.64 0.65 0.67 0.80 0.80 0.80 0.83 0.87 0.89 0.89 0.92 0.94 0.95 0.99 0.99 0.99 1.14 1.21 1.22 1.24 1.25 1.25 1.27 1.27 1.36 1.42 1.52 1.52 1.59 1.60 1.62 1.62 1.66 1.91 1.92 1.96 2.04 2.23 2.48