Youve just begun work at the brokerage firm of Dewey, Cheatam, and Howe as a stock analyst.

Question:

You’ve just begun work at the brokerage firm of Dewey, Cheatam, and Howe as a stock analyst. This morning you read an article in the paper that said a large-scale reduction in defense spending is imminent. Fred Fastbuck, a at the firm, has several clients who are elderly retirees. You recently learned that he’s actively putting those clients into several defense industry he describes as low risk. Fred has told you that he feels the are low risk because they have betas of 1.0 or less. How would you advise Fred? Consider the real meaning of beta and its constancy over time.

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing... Broker
A broker is someone or something that acts as an intermediary third party, managing transactions between two other entities. A broker is a person or company authorized to buy and sell stocks or other investments. They are the ones responsible for...