Use the Information for the Question(s)below

question 90

Multiple Choice

Use the information for the question(s) below.
Suppose that in the coming year,you expect Exxon-Mobil stick to have a volatility of 42% and a beta of 0.9,and Merck's stock to have a volatility of 24% and a beta of 1.1.The risk free interest rate is 4% and the market's expected return is 12%.
-Which stock has the highest total risk?

• A)Merck since it has a lower volatility
• B)Merck since it has a higher Beta
• C)Exxon-Mobil since it has a higher volatility
• D)Exxon-Mobil since it has a lower beta

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Definitions:

Vestibular Senses

Refer to the sensory system that contributes to balance, spatial orientation, and coordination, primarily involving the inner ear.

Tactile Sense

The sense that allows individuals to perceive touch, texture, and pressure, primarily through skin contact.

Endorphins

are neurotransmitters produced by the body to reduce pain and boost pleasure, resulting in feelings of well-being.

Kinesthetic Sense

Also known as proprioception, it refers to the ability to sense body position, movement, and dynamics of our limbs in space.