Multiple Choice
You observe the following information regarding Companies X and Y:- Company X has a higher expected return than Company Y.- Company X has a lower standard deviation of returns than Company Y.- Company X has a higher beta than Company Y.Given this information,which of the following statements is correct?
A) Company X has more company-specific risk than Company Y.
B) Company X has a lower coefficient of variation than Company Y.
C) Company X has less market risk than Company Y.
D) Company X's returns will be negative when Y's returns are positive.
Correct Answer:
Verified
Correct Answer:
Verified
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