Market Risk Refers to the Tendency of a Stock to Move

question 105

True/False

Market risk refers to the tendency of a stock to move with the general stock market.A stock with above-average market risk will tend to be more volatile than an average stock, and its beta will be greater than 1.0.

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Definitions:

Psychological Character Traits

Enduring qualities or characteristics that individuals possess, influencing their behaviors, attitudes, and how they interact with the world and others.

Ethnomethodology

A sociological perspective that examines the everyday methods people use to make sense of and navigate their social worlds.

Internal Strains

Refers to pressures or tensions experienced within an entity, organization, or individual, often leading to challenges in functioning or mental stress.

External Strains

Stressors or pressures from the external environment that impact individuals or groups, potentially leading to social problems or deviance.