Which of the following typically describes companies with lower betas?

Companies with lower betas are typically characterized as being more mature and non-cyclical. A lower beta indicates that a company's stock price is less volatile when compared to the overall market. These companies tend to have stable revenues and earnings, often seen in industries that provide essential goods and services regardless of the economic cycle. For example, sectors like utilities or consumer staples usually exhibit this behavior, as demand for their products does not fluctuate significantly with economic conditions.

This stability is what attributes these companies a lower beta, as investors consider them less risky during market downturns. Consequently, mature and non-cyclical companies generally provide consistent returns and may appeal to investors seeking income and stability rather than high risk and high growth.