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:

Ligament

Fibrous connective tissue that connects bones to other bones, providing stability and support to joints.

Bone

Dense, rigid connective tissue constituting part of the skeleton in vertebrates, providing structure and protection.

Joint

Region where bones meet.

Muscle

Tissue in animals that is characterized by long fibers and the ability to contract, producing movement or force.