You Observe the Following Information Regarding Companies X and Y:​-

question 53

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.

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Definitions:

Indians

Term historically used to refer to the indigenous peoples of the Americas; now considered outdated and replaced with "Native Americans" or "American Indians."

Free Blacks

African Americans who were not enslaved before the abolition of slavery, living in both the Northern and Southern United States.

Panic Of 1837

Beginning of major economic depression lasting about six years; touched off by a British financial crisis and made worse by falling cotton prices, credit and currency problems, and speculation in land, canals, and railroads.

Depression

A severe and prolonged downturn in economic activity characterized by high unemployment, decreased GDP, and reduced consumer spending.