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You are attempting to choose between stock A and stock X. Stock A has an expected return of 9%, a standard error of 25, and
You are attempting to choose between stock A and stock X. Stock A has an expected return of 9%, a standard error of 25, and a beta of 1 Stock X has an expected return of 12% and a standard error of 28, and a beta of.90 From the perspective of stand alone risk: Select one: O a. Stock X is riskier because it has a higher standard deviation O b. Stock A is riskier because it has a higher coefficient of variation O c. Stock X is riskler because it has a higher expected return O d. Stock A is riskier because it has a higher beta O e. Stock A has the same level of risk as stock X For cost of capital purposes, term "capital" primarily refers to: Select one: O a. money used to purchase mostly non-current assets O b. all money O c. only money used for current assets o d.only money owed to other sources (lenders) e. "big" letters
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