1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
When negotiating a business acquisition, buyers sometimes agree to pay extra amounts to sellers in the future if performance met
Lelechka [254]

Answer:

b. The fair value of the contingent consideration is included in the overall fair value of the consideration transferred, and a liability or additional owners' equity is recognized.

Explanation:

Measuring the fair value of contingent consideration for financial reporting is a complex process – based on a number of variable inputs, unique risk profiles, and potentially complicated payoff structures.

3 0
2 years ago
Which kind of business organization does not allow for profit sharing?
Nataly_w [17]
The answer is d sole proprietorship
6 0
3 years ago
Why is body language an important indicator in business meeting
Andrews [41]

Answer:

Body language is necessary to read other people's true feelings and intentions. It helps you connect with them and build better relationships. In a meeting context, it helps to see the reactions of the participants: a facial expression can reveal a point of view before a word is spoken

6 0
3 years ago
Read 2 more answers
Jane is afraid of crowds. If her therapist uses systematic desensitization technique, Jane will be asked to
adell [148]
Jane will be asked to perform a task that counter her fear. For instance, she can be asked to attend a closed door party which will not allow anyone to leave until after the party. Systematic desensitization technique is a behavior therapy used by psychologists to help patients effectively overcome their fear and anxiety disorders. The method functions by exposing the patients to their fears gradually. 
3 0
3 years ago
Tonelli Trucking buys a $65,000 truck on credit. Which financial statement will be affected by this transaction?
Arlecino [84]

Answer:

A : balance sheet only

Explanation:

In the given question, the truck was purchased on credit and the truck is a fixed asset that comes under the balance sheet only because in the income statement, the expenses and revenues are recorded whereas retained earnings records profit which is left to the company.  

So, it affects the balance sheet only. As balance sheet records all types of assets and all types of liabilities plus shareholder equity.

6 0
3 years ago
Other questions:
  • An income property has a gross annual income of $14,250 and monthly expenses of $300. It has been valued at $147,000. What is th
    9·1 answer
  • The net income or net loss is calculated on the
    5·1 answer
  • The price-elasticity of demand coefficient, ed, is measured in terms of
    6·1 answer
  • A company has the following transactions during the year related to stockholders’ equity.
    15·1 answer
  • TOMS is a shoe company that, since its inception, has given away one pair of shoes to someone in need for every pair purchased b
    15·1 answer
  • A court order to compel or restrain a particular action is called
    12·2 answers
  • Annabey Inc., a small candy manufacturing company established in 1937, now has several large units that sell unique flavors of c
    10·1 answer
  • The targeted skill scope strategy
    8·2 answers
  • Susmel Inc. is considering a project that has the following cash flow data. What is the project's payback? Year 0 1 2 3 Cash flo
    8·1 answer
  • Jamie is single. In 2020, she reported $108,000 of taxable income, including a long-term capital gain of $5,800. What is her gro
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!