How is the company's stock risk associated with its demand elasticity?

I examine a sample of 20 companies to see if individual total stock risk is associated with its product or service demand elasticity. My evidence is consistent with my first hypothesis that elastic firms' stock prices are more strongly affected by the changes in the input cost than are inelastic firms.1 My evidence is also consistent with my second hypothesis that for two companies with same leverage, elastic companies' stock prices are more volatile than those of inelastic companies. Since both of hypotheses were supported by the empirical data, it can be concluded that the higher the company elasticity is, the riskier the company's stock is in terms of total risk.