You expect Wesfarmers (WES) to have a beta of 1 over the next year and the beta of Qantas (QAN) to be 1.2 over the next year. Also, you expect the volatility of WES to be 30% and that of QAN to be 40% over the next year. Which company has more systematic risk? Which company has more total risk?
A) WES, WES
B) WES, QAN
C) QAN, WES
D) QAN, QAN
Correct Answer:
Verified
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