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.

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Definitions:

Agriculture Industry

The sector of the economy that specializes in the production, processing, and distribution of food, fiber, and products derived from plants and animals.

Mining Industry

Refers to the sector involved in the extraction of minerals and other geological materials from the earth.

Consumer Culture

A societal framework where buying and consuming goods and services is a primary pursuit and indicator of social status or personal happiness.