However, a portfolio designed to mitigate risk and limit losses should have lower beta investments. Negative beta stocks could have a place in that portfolio. Itâs important to remember that a negative beta stock does have a relationship to the stock market. It moves in the opposite direction. In a falling market, the negative beta investments will provide a hedge because they will increase in value.
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Coffee Sales. Coffee sales play a big role in boosting a cafe's profits, since the markup on coffee is higher than most food items. An average cup costs from 55 to 69 cents, which most cafes sell for $2.50 to $3.50, according to consultant Tony Eldred's analysis for the Beanzaround website. If the price is $2.50, selling 100 more cups per day would generate an additional $66,000 per year in profits. Based on these figures, Eldred estimates profit margins for cafes and restaurants should equal 25 and 7 percent, respectively.