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You Observe the Following Information Regarding Companies X and Y

Question 75

Multiple Choice

You observe the following information regarding Companies X and Y:
σCompany X has a higher expected return than Company Y.
σCompany X has a lower standard deviation of returns than Company Y.
σCompany X has a higher beta than Company Y.
Given this information, which of the following statements is CORRECTσ


A) company x has a lower coefficient of variation than company y.
B) company x has less market risk than company y.
C) company x's returns will be negative when y's returns are positive.
D) company x's stock is a better buy than company y's stock.
E) company x has more diversifiable risk than company y.

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