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:

Systematic Desensitization

A therapeutic technique used to treat phobias and anxiety disorders by gradually exposing the patient to the feared object or situation in a controlled manner.

Relax

To become less tense or anxious, or to make something less taut or firm, often in the context of stress relief or leisure activities.

Imagine

The ability to form new images and sensations in the mind that are not perceived through the five senses.

Extinction

In psychology, the gradual weakening and eventual disappearance of a conditioned response when the reinforcement is no longer presented.