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

question 56

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
• E)They both have the same risks.

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Definitions:

Global Stratification

The hierarchical arrangement of individuals and countries around the world, according to socioeconomic status, power, and wealth.

International Telecommunication

Refers to the global exchange of information through electronic means, such as phone calls, emails, and satellite broadcasts.

International Trade

The exchange of goods and services across international borders or territories.

Foreign Aid

Is financial, technical, or material assistance given by one country to another, usually for developmental purposes or humanitarian aid.