Market Risk Refers to the Tendency of a Stock to Move

question 15

Multiple Choice

Market risk refers to the tendency of a stock to move with the general stock market.Which best describes a stock with an above-average market risk?

• A)A stock with above-average market risk will tend to be more volatile than an average stock, and its beta will be greater than 1.0.
• B)A stock with above-average market risk will tend to be more volatile than an average stock, and its beta will be less than 1.0.
• C)A stock with above-average market risk will tend to be more volatile than an average stock, and its beta will be equal to 1.0.
• D)A stock with above-average market risk will tend to be more volatile than an average stock, and its beta will be greater than .50 and less than 1.0.

---

Definitions:

Motor Functions

The physiological processes that involve the coordination and execution of muscle movements.

Cerebral Hemisphere

Each of the two parts of the cerebrum (the largest part of the brain) in the brain of a vertebrate, separated by the fissure.

Corpus Callosum

The broad ribbon of nerve fibers that links the two hemispheres of the brain and facilitates communication between them.

Neurons

Neurons are the basic working units of the brain, specialized cells that transmit information to other nerve cells, muscle, or gland cells.