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:

Dialoguer

A person engaged in a dialogue or conversation, aiming for mutual understanding and sharing of perspectives.

Arguer

A person who presents reasons to support or oppose an idea or issue in a discussion or debate.

Persuade

The act of convincing someone to do or believe something through reasoning or argument.

RERUN Strategy

A conflict resolution technique that entails Reflect, Explain, Reason, Understand, and Negotiate.