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.

Question

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.

Quizplus · Accepted Answer

The Answer of 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.

You Observe the Following Information Regarding Companies X and Y