Observe the Following Information Regarding Companies X and Y: •

question 3

Multiple Choice

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 diversifiable 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.
• E)Company X's stock is a better buy than Company Y's stock.

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Definitions:

Efficiency, Equity, and Voice

A framework evaluating the effectiveness of organizational decisions based on their economic efficiency, fairness, and the opportunity for participation by affected parties.

U.S. Employment Relations

Encompasses the legal, social, and economic relationships between employers and employees in the United States, including the negotiation of wages, work conditions, and dispute resolutions.

Employers

Entities or individuals that hire and pay workers for their services.

Labor Union

An organized association of workers formed to protect and further their rights and interests through collective bargaining.