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:

Empathy and Support

The ability to understand and share the feelings of another, coupled with providing help and encouragement.

Overcoming Resistance

Strategies or methods used to address and mitigate resistance to change within organizations or individual behaviors.

Empathy and Support

Understanding and sharing the feelings of another, accompanied by a readiness to provide help or support.

Communication

The process of conveying information and meaning through verbal, non-verbal, and written methods among people or machines.