You observe the following information regarding Company X and Company Y: • Company X has a higher expected mean return than Company Y.
• Company X has a lower standard deviation than Company Y.
• Company X has a higher beta than Company Y.
Given this information, which of the following statements is most correct?
A) Company X has a lower coefficient of variation.
B) Company X has more company-specific risk.
C) Company X is a better stock to buy.
D) Statements a and b are correct.
E) Statements a, b, and c are correct.
Correct Answer:
Verified
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