You Expect General Motors (GM) to Have a Beta of 1.5

question 58

Multiple Choice

You expect General Motors (GM) to have a beta of 1.5 over the next year and the beta of Exxon Mobil (XOM) to be 1.9 over the next year. Also, you expect the volatility of General Motors to be 50% and that of Exxon Mobil to be 35% over the next year. Which stock has more systematic risk? Which stock has more total risk?

• A) XOM, GM
• B) GM, XOM
• C) GM, GM
• D) XOM, XOM

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Definitions:

Social Exclusion

The process through which individuals or groups are systematically blocked from rights, opportunities, and resources that are normally available to members of society.

Occupation Demand

refers to the need or requirement for specific types of jobs in the market, influenced by economic, technological, and social factors.

Common Identity

Common identity refers to the shared attributes, values, or characteristics that create a sense of belonging among a group of people.

Civic Responsibility

The duty of citizens to participate in the life of the community or society, often to improve its well-being.