You Observe the Following Information Regarding Companies X and Y:​-

question 53

Multiple Choice

You observe the following information regarding Companies X and Y:​- Company X has a higher expected return than Company Y.- Company X has a lower standard deviation of returns than Company Y.- Company X has a higher beta than Company Y.​Given this information,which of the following statements is correct?

• A)Company X has more company-specific risk than Company Y.
• B)Company X has a lower coefficient of variation than Company Y.
• C)Company X has less market risk than Company Y.
• D)Company X's returns will be negative when Y's returns are positive.

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Definitions:

Machine-hours

A measure of the amount of time machines are operated, used in allocating overhead costs.

Direct Labour Cost

The total expense of wages paid to workers directly involved in the manufacturing process or production of goods or services.

Cost of Goods Manufactured

The total production cost of goods completed during a specific period, including labor, material, and overhead costs.

Manufacturing Overhead Applied

The portion of manufacturing overhead costs allocated to individual units of production based on a predetermined overhead rate.