Business, 26.09.2019 22:00 BigDaddy1220

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?
company x has more diversifiable risk than company y.
company x has a lower coefficient of variation than company y.
company x has less market risk than company y.
company x's returns will be negative when y's returns are positive.
company x's stock is a better buy than company y's stock.
b. stock a's stock has a beta of 1.30, and its required return is 13.25%. stock b's beta is 0.80. if the risk-free rate is 2.75%, what is the required rate of return on b's stock? (hint: first find the market risk premium.)
c. mulherin's stock has a beta of 1.23, its required return is 9.50%, and the risk-free rate is 2.30%. what is the required rate of return on the market? (hint: first find the market risk premium.)

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—company x has a higher ex...

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