If a Stock's Returns Are Volatile, Then the Stock

question 103

Multiple Choice

If a stock's returns are volatile, then the stock:

• A) cannot be considered a negative risk asset.
• B) can still be considered a negative risk asset.
• C) has macro risk, but no unique risk.
• D)does not offer diversification potential.

Appreciate the role of government, consumption, investment, and net exports in composing GDP.

Understand the significance of the GDP deflator and its role in distinguishing between nominal and real GDP.

Analyze the impact of economic events and policies on GDP growth and well-being.

Be aware of current trends and shifts in global economies, with a focus on trillion-dollar economies.

---

Definitions:

Closing Entries

At the close of an accounting cycle, transactions are documented to move amounts from temporary accounts to those that are permanent.

Debit Balance

Occurs when the sum of debits in an account exceeds the sum of credits, reflecting an asset or expense increase or liability or equity decrease.

Post-Closing Trial Balance

A summary listing of all company accounts that remain after the closing entries are made, ensuring that debits equal credits.

Dividends

Payments made by a corporation to its shareholder members, generally derived from the company's profits.