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You observe the following information regarding Companies X and Y: i. Company X has a higher expected return than company Y. ii. Company Y has

You observe the following information regarding Companies X and Y:

i. Company X has a higher expected return than company Y.

ii. Company Y has a lower standard deviation of returns than Company Y.

iii. Company X has a higher beta than Company Y.

Given this information, which of the following statements is CORRECT?

A. Company X has more diversifiable risk than Company Y.

B. Company S has a lower coefficient of variation than Company Y.

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

D. Company X's returns will be negative when Y's returns are positive.

E. Company X's stock is a better buy than Company Y's stock.

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