Company x has a higher required return than company y but


Company X has a higher required return than Company Y, but Company X has a lower standard deviation of returns than Company Y. Given this information, which of the following statements is CORRECT?

a. Company X has less market risk than Company Y.

b. Company X has more company-specific risk than Company Y.

c. Company X has a higher correlation with the market than Company Y.

d. Company X’s stock is a better buy than Company Y’s stock.

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Financial Management: Company x has a higher required return than company y but
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