Market Risk Refers to the Tendency of a Stock to Move

question 18

True/False

Market risk refers to the tendency of a stock to move with the general stock market.A stock with above-average market risk will tend to be more volatile than an average stock,and it will have a beta which is greater than 1.0.

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Definitions:

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 and 1.

Control Group

In an experiment, the group that does not receive the treatment under investigation; used as a baseline to compare effects.

Viral Infection

A disease that occurs when an organism's body is invaded by pathogenic viruses, and infectious virus particles are produced within the body.

Proportions

Refers to the fractional part of a whole, represented by the ratio of a part to the whole.