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:

Downsized

Having undergone a process where a company reduces its workforce to lower costs and improve efficiency, often resulting in layoffs.

Legal Equality

The principle that all individuals are equal before the law and have the same rights and obligations regardless of other personal traits.

Gay and Lesbian

Terms used to describe people who are romantically or sexually attracted to individuals of the same sex; often used in the broader context of the LGBTQ+ community.

Domestic-Partner Benefits

Employee benefits extended to domestic partners, similar to those offered to spouses, typically including health insurance, dental coverage, and family leave, recognizing nonmarital partnerships.