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.

---

Definitions:

Conflict Defined

The process or situation in which there are disagreements, disputes, or clashes between parties.

Negatively Affected

Experiencing a detrimental impact, leading to adverse changes in mental, emotional, or physical states.

Interests Opposed

Situations where the desires, intentions, or goals of individuals or groups are in conflict with one another.

Constructive Conflict

A type of conflict that leads to positive outcomes, fostering innovation, growth, and improvement within a group.