Using information available at finance.yahoo.com, obtain Beta estimates for two companies: Caterpillar (Symbol = CAT) and Wal-Mart (Symbol = WMT). Hint: You should be able to find the Beta estimates once you obtain a stock price quote for each company.

A. What is the Beta estimate for each company?

B. Based upon this Beta estimate, which stock price do you think will increase by a greater % in response to unexpected, favorable, macroeconomic news? Which stock price will decrease by the greater percent in response to unexpected, negative, macroeconomic news?

C. Based upon the descriptions of the two companies contained in the finance.yahoo.com Profile(s), why do the Betas in Part A and your answers in Part B make sense from an economic perspective?