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.

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Definitions:

NSF Returned Check

A check that has been returned by the bank because it could not be processed due to insufficient funds in the account.

Check Register

A record, often part of a checkbook, where all check transactions, withdrawals, and deposits are recorded by an account holder.

Interest

A fee, usually charged for the use of money.

Check Register

A record of checks written, deposits made, and current balances within a checking account.