If the total risk of firm X is greater than that of firm Y, then the beta of firm X must be greater than that of firm Y.

Name: If the total risk of firm X is greater than that of firm Y, then the beta of firm X must be greater than that of firm Y.
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Total risk includes both systematic (market) risk, measured by beta, and unsystematic (specific) risk, which is unique to the firm. A firm can have a higher total risk due to unsystematic factors while having a lower or similar beta compared to another firm.

If the Total Risk of Firm X Is Greater Than