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:

Long-term Consequences

The far-reaching effects or outcomes of an action, condition, or disorder that manifest over an extended period.

Harm Reduction

Strategies and approaches aimed at minimizing the negative health, social, and legal impacts associated with behavior, such as drug use, that cannot be completely stopped.

Problematic Substance Use

The use of alcohol, drugs, or other substances in a way that is harmful to the user or to others, often leading to addiction or substance use disorders.

Pros

Advantages or positive aspects of a situation or decision.