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

question 86

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