You Expect General Motors (GM)to Have a Beta of 1

question 33

Multiple Choice

You expect General Motors (GM) to have a beta of 1 over the next year and the beta of Exxon Mobil (XOM) to be 1.2 over the next year.Also,you expect the volatility of General Motors to be 30% and that of Exxon Mobil to be 40% over the next year.Which stock has more systematic risk? Which stock has more total risk?

• A)GM,GM
• B)GM,XOM
• C)XOM,XOM
• D)XOM,GM
• E)They both have the same risks.

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Definitions:

Pushbutton

A simple switch mechanism for controlling some aspect of a machine or a process, often used to start or stop functions.

Counter

In digital logic and computing, a counter is a device that stores and displays the number of times a particular event or process has occurred, often used for tracking repetitions in a circuit or program.

Accumulated Count

A value that represents the total number of events or quantities that have been counted over a period of time.

Timer Program

A function within PLC programming used to count time intervals for the controlled process.