You Observe the Following Information Regarding Company X and Company

question 34

Multiple Choice

You observe the following information regarding Company X and Company Y: • Company X has a higher expected mean return than Company Y.
• Company X has a lower standard deviation than Company Y.
• Company X has a higher beta than Company Y.
Given this information, which of the following statements is most correct?

• A) Company X has a lower coefficient of variation.
• B) Company X has more company-specific risk.
• C) Company X is a better stock to buy.
• D) Statements a and b are correct.
• E) Statements a, b, and c are correct.

---

Definitions:

Complement Rate

The difference between a particular interest rate and 100%.

Discount Date

The exact date on which a discount is applied or expires, often related to promotions or financial transactions.

Due Date

The specific date by which a payment is required to be made.

Freight

The charge paid for transport of goods by sea, air, or land, typically based on the weight and distance of the shipped items.