Use the Information for the Question(s)below

question 82

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 systematic risk?

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

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Definitions:

Component Of Attitude

Constitutes one of the elements that make up an individual's attitude, typically including cognitive, affective, and behavioral components.

Negative Feedback

In management or systems theory, it refers to a process where the outputs of a system are fed back as inputs as a part of a chain of cause-and-effect that forms a circuit or loop.

Intentional Component

The intentional component refers to the aspect of behavior or action that is carried out with purpose or deliberate intention, often highlighting the motivation behind actions.

Act Consistently

The behavior of maintaining uniformity and reliability in actions over time.