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

question 93

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 specific risk.
• D) does not offer diversification potential.

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Definitions:

Demand

The quantity of a good or service that consumers are willing and able to purchase at various price levels at a given period.

Labor

The effort by humans to produce goods or services in the economy.

Resource Demand Curve

A graphical representation showing the relationship between the price of a resource and the quantity of that resource demanded by firms.

Shift Factors

Variables or conditions that can cause a shift in demand or supply curves, thus changing market equilibrium.