26 A company such as Costco that generally sells goods best classified as necessities (best answer) a. would have a low beta coefficient, typically more than one b. would have a high beta coefficient, typically more than one c. would have a low beta coefficient, typically less than one d. would have a high beta coefficient, typically less than one 27 According to the theory supporting the securities market line (SML) a. b. c. d. bonds are better than stocks for investment return..period. 9 aggressive portfolio managers are fighting a losing battle in trying to outperform the stock market financial securities generally outperform real and tangible assets over any period of time the reward-to-risk ratio must be the same for all the assets in the market