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:

Ostracism

The social or professional exclusion of an individual by their peers or organization, often resulting in negative psychological and emotional consequences.

Sarcasm

The use of irony to mock or convey contempt, often characterized by saying the opposite of what is meant to highlight the absurdity of a situation.

Referent Power

A form of interpersonal power that derives from being admired and respected, leading others to identify with the person having power.

Position

An assigned role or location within an organizational structure or context.