Which of the Following Stocks Has the Greatest Systematic Risk

question 10

Multiple Choice

Which of the following stocks has the greatest systematic risk? $\begin{array}{c}\begin{array}{lll}\\ \text { Stock A}\\ \text { Stock B}\\ \text { Stock C}\\ \text { Stock D}\end{array}\begin{array}{c} \text {Standard deviation}\\62 \% \\47 \% \\53 \% \\59 \% \%\end{array}\begin{array}{lll} \text {Beta}\\ 1.10 \\ 1.05 \\1.30 \\0.90\end{array}\end{array}$

• A) Stock A
• B) Stock B
• C) Stock C
• D) Stock D
• E) Insufficient information.

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Definitions:

Income Summary

An account used to summarize the revenue and expenses for a specific period, aiding in the transition to the next accounting period.

Net Loss

The amount by which total expenses exceed total revenues in a given period, indicating a financial loss.

Net Income

A company's total earnings post the subtraction of all expenses, taxes, and costs from its overall revenue.

Owner's Capital

This represents the total equity invested by the owners in a company plus any retained earnings, indicative of the net worth of the company from the owner's perspective.