You expect General Motors (GM) to have a beta of 1 over the next year and the beta of Exxon Mobil (XOM) to be 1.2 over the next year
Also, you expect the volatility of General Motors to be 30% and that of Exxon Mobil to be 40% over the next year. Which stock has more systematic risk? Which stock has more total risk?
A) GM, GM
B) GM, XOM
C) XOM, XOM
D) XOM, GM
Answer: C
Business
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What will be an ideal response?
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In order to maximize returns, firms should outsource tasks which ________
A) are strategically important to the firm's value-chain B) can be efficiently accomplished by foreign suppliers C) will impact the foreign supplier's distribution area D) are critical to the focal firm's annual profit margin
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