You Expect General Motors (GM)to Have a Beta of 1

question 33

Multiple Choice

You expect General Motors (GM) to have a beta of 1 over the next year and the beta of Exxon Mobil (XOM) to be 1.2 over the next year.Also,you expect the volatility of General Motors to be 30% and that of Exxon Mobil to be 40% over the next year.Which stock has more systematic risk? Which stock has more total risk?

• A)GM,GM
• B)GM,XOM
• C)XOM,XOM
• D)XOM,GM
• E)They both have the same risks.

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A statement made to convince or influence others to accept a belief, perspective, or course of action.

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The attainment of a successful conclusion or solution to a problem or conflict.

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Negative outcomes or effects that result from specific actions or decisions.