Figure 27-4 -Which of the Following Is a Source of Market Risk

question 33

Multiple Choice

Figure 27-4
-Which of the following is a source of market risk?

• A)Holding stocks in many companies carries the risk of a reduced average return.
• B)Real GDP varies over time and sales and profits move with real GDP.
• C)When a paper producer has declining sales, it is likely that so will other paper producers.
• D)If stockholders become aggravated with the way a CEO runs a company, the price of that company's stock might fall in the stock market.

---

Definitions:

Galactosemia

A rare genetic disorder characterized by the inability to metabolize the sugar galactose properly, leading to various health issues.

Pectin

A soluble fiber found in the cell walls of fruits and vegetables, used as a gelling agent in foods and potentially beneficial for gastrointestinal health.

Carbohydrates

Organic compounds, including sugars, starches, and cellulose, that are a major source of energy for the body.

Diaphragm

A muscular and membranous partition separating the thoracic cavity from the abdominal cavity, playing a major role in breathing.