You Observe the Following Information Regarding Companies X and Y

question 93

Multiple Choice

You observe the following information regarding Companies X and Y:
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-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.
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Given this information,which of the following statements is CORRECT?

• A) Company X has more diversifiable 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.
• E) Company X's stock is a better buy than Company Y's stock.

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Definitions:

House Committees

Subgroups within the United States House of Representatives responsible for conducting hearings, examining and developing legislation, and overseeing federal agencies and programs.

Minority-Majority Districts

Electoral districts in which the majority of the constituents are racial or ethnic minorities.

Voting Rights Act

A landmark piece of federal legislation in the United States passed in 1965 to prohibit racial discrimination in voting.

Unconstitutional

Actions, laws, or policies that are deemed to violate the principles or specific provisions of a constitution, rendering them invalid or unenforceable.