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.

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Definitions:

Public Opinion

The aggregate of individual attitudes or beliefs held by the adult population concerning various issues or topics of interest.

Royal Officials

Individuals appointed by a monarch or royal authority to perform specific duties and administer governance in various capacities within a kingdom or empire.

Enlightenment

An intellectual and philosophical movement in Europe during the 17th and 18th centuries emphasizing reason, individualism, and skepticism towards traditional doctrines.