Use the Information for the Question(s)below

question 7

Multiple Choice

Use the information for the question(s) below.
Suppose that in the coming year,you expect Exxon-Mobil stock 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:

Ineffective

Something that fails to produce the desired result or outcome.

Shared Mission

A collective goal or purpose that unites members of a group or organization in their efforts.

Responsibility

The state or fact of having a duty to deal with something or of having control over someone.

Complex Challenges

Problems or situations that are multifaceted and difficult to solve, requiring innovative and comprehensive approaches.