Market Risk Refers to the Tendency of a Stock to Move

question 9

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 it will definitely have a beta which is greater than 1.0.

---

Definitions:

Motivate

The process of providing reasons or incentives for someone to act in a desired manner.

Children's Understanding

The developmental processes by which children come to comprehend concepts, ideas, and the world around them.

Critical Period

A specific time during development when the organism is particularly sensitive to certain stimuli, making it easier for certain skills or behaviors to be acquired.

Sensitive Period

A stage in an organism's development during which it is more responsive to certain stimuli and capable of learning or adapting in particular ways.