When comparing two firms' levels of risk, which of the following statements is CORRECT?

• The firm with the higher stand-alone risk will have a higher expected return.
• The firm with the lower stand-alone risk will have more systematic risk.
• The firm with the higher stand-alone risk will have more systematic risk.
• The firm with the higher systematic risk will have a higher expected return.
• The firm with the higher stand-alone risk will have more diversifiable risk.

When comparing two firms' levels of risk, which of the following statements is CORRECT? The firm with the higher stand-alone risk will have a higher expected return. The firm with the lower stand-alone risk will have more systematic risk. The firm with the higher stand-alone risk will have more systematic risk. The firm with the higher systematic risk will have a higher expected return. The firm with the higher stand-alone risk will have more diversifiable risk