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:

Marketing Plan

A comprehensive document outlining a company's advertising and marketing efforts, including strategies, objectives, and activities for a specific period.

Serial Cohabitation

The practice of living with multiple romantic partners in succession, without being married, over a person’s lifetime.

Serial Monogamy

A succession of monogamous (exclusive) relationships.

Open Marriage

A marriage in which the partners agree that each may engage in sexual relationships with other people.