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Company ABC's stock has a volatility of 45% and a beta of 0.85, and Company XYZ 's stock has a volatility of 25% and a
Company ABC's stock has a volatility of 45% and a beta of 0.85, and Company XYZ 's stock has a volatility of 25% and a beta of 1.57. The risk-free interest rate is 3% and the market's expected return is 16%. Which stock has the highest systematic risk? XYZ, since it has a higher beta ABC, since it has a lower beta ABC, since it has a higher volatility XYZ, since it has lower volatility
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