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Utilize the knowledge you have gained to respond to the following essay questions.Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it.
Is economic growth an appropriate goal for business?
Systematic Risk Principle
A principle stating that investors need to be compensated for taking on increased levels of undiversifiable risk.
Not Correlated Stocks
Stocks whose price movements are independent of each other, indicating no direct relationship in their performance.
Volatility
The degree of variation of a trading price series over time, usually measured by the standard deviation of logarithmic returns.
Negatively Correlated Stocks
Stocks that move in opposite directions; when the price of one increases, the price of the other tends to decrease.
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