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:

Initiative

The ability to assess and initiate things independently, often leading to the implementation of new plans or strategies.

Employee's Departure

The process or act of an employee leaving a company or organization, either voluntarily or involuntarily.

Demotion

The act of reducing an employee's rank or position, usually as a disciplinary measure or due to organizational restructuring.