You Observe the Following Information Regarding Companies X and Y

question 72

Multiple Choice

You observe the following information regarding Companies X and Y: Given this information, which of the following statements is CORRECT?

• A) Company X has a lower coefficient of variation than Company Y.
• B) Company X has less market risk than Company Y.
• C) Company X's returns will be negative when Y's returns are positive.
• D) Company X's stock is a better buy than Company Y's stock.
• E) Company X has more diversifiable risk than Company Y.

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Definitions:

Mean Annual Income

The average amount of money earned per year by an individual or household.

Standard Deviation

This statistical index measures how spread out the numbers in a data set are.

Confidence Interval

An expanse of values, garnered from sample analysis, envisioned to embrace the value of an undetected population parameter.

Mean Score

The average score calculated by adding all individual scores together and then dividing by the number of scores.