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BigorU [14]
3 years ago
15

You expect General Motors (GM) to have a beta of 1.3 over the next year and the beta of Exxon Mobil (XOM) to be 0.9 over the nex

t year. Also, you expect the volatility of General Motors to be 40% and that of Exxon Mobil to be 30% over the next year. Which stock has more systematic risk? Which stock has more total risk? A) XOM, GM B) XOM, XOM C) GM, XOM D) GM, GM E) Not enough information to answer the question
Business
1 answer:
professor190 [17]3 years ago
3 0

Answer:

d

Explanation:

Systemic risk are risk that are inherent in the economy. They cannot be diversified away. They are also known as market risk. examples of this risk include recession, inflation, and high interest rates. Investors should seek compensation for systemic risk. Systemic risk is measured by beta. The higher beta is, the higher the systemic risk and the higher the compensation demanded for by investors

GM has a higher beta and thus it has a higher systemic risk

total risk is measured by volatility. The higher the volatility, the higher the total risk . GM has a higher volatility

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A ________ refers to an agreement between the Equal Employment Opportunity Commission (EEOC) and an organization that the organi
babymother [125]

Answer:

The correct word for the blank space is: Consent decree.

Explanation:

A consent decree is an agreement of two parties ordered by a judge to avoid going further into a trial over matters that violate the law or regulatory codes. Consent decrees are used mostly used in <em>Civil Rights violations </em>typically where there are discrimination activities at work. In such a case, the  Equal <em>Employment Opportunity Commission</em> (EEOC) intervenes to make the consent decree agreement with the employer so the violations stop.

7 0
3 years ago
Tejas has decided to finance his college education through student loans. He is planning on taking out $100,000 in loans to beco
aleksklad [387]

Answer: A. No, because he is taking out more debt then he will ever be able to pay back.

Explanation:

Getting the finance to foot one's bills could come from many different sources, one of which is to put in for a loan. However, the advice to secure a loan might best be given by a finance expert who has the knowledge and expertise required to adequately access the value of the loan, the probable return on investment and ayher embedded considerations. In the scenario given above, taking out a loan of up to $100,000 in other to target the job of finally landing a teaching job at a nursery school which would on average return a meagre pay than cannot be pitted with the loan value would be considered unreasonable on average by a finance professional simply because the return on investment will probably be nothing near the value of the loan. This way, the debt incurred from due to the loan application may never be returned from the intended job.

4 0
3 years ago
Beef Burgers, Inc. contracts to buy five hundred head of cattle from Cattle Ranch. Before the seller delivers, an outbreak of di
Studentka2010 [4]

Answer:

B) ​no longer applies.

Explanation:

Based on the information given the perfect tender rule will NO LONGER APPLIES because the seller which is Cattle Ranch is yet to deliver the cattle to Beef Burgers, Inc before the outbreak of the disease causes a quarantine of the ranch, which is why the perfect tender rule states that a buyer is only permitted to reject goods that is been delivered to him or her from a seller only in a situation where the seller's delivered the goods in way that are not perfect or that does not meet the contract agreement between both the buyer and the sellers or in a situation where the goods did not conform to the description which may make the buyer to legally reject the goods delivered.

Therefore based on above scenario between Beef Burgers, Inc the buyer and Cattle Ranch the perfect tender rule will NO LONGER APPLIES .

7 0
3 years ago
The listening gap is understood to be the difference between ________. Group of answer choices A. The speed of sound and the spe
diamong [38]

Answer: the speed at which the brain can comprehend communication and speed at which the average adult speaks

Explanation:

Listening is a primary skill that is used by most individuals to gather information.

The listening gap is understood to be the difference between the speed at which the brain can comprehend communication and speed at which the average adult speaks.

3 0
4 years ago
The relationship between these two entities is an example of: __________
n200080 [17]

Answer:

d. vendor-managed inventory.

Explanation:

Vendor Managed Inventory or in short, the VMI may be defined as a business model or a concept where the buyer of the product or a service provides the information to a vendor of the product while the vendor takes all the responsibility and agrees to maintain an agreed inventory of the product,  which is usually at the buyer's or consumer's consumption location.

It is a inventory management practice for optimizing the inventory of products that is held by a distributor.

6 0
3 years ago
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