Market Risk Refers to the Tendency of a Stock to Move

question 36

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 its beta will be greater than 1.0.

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Definitions:

Sign Post

An indication or guide that provides direction or information, either literally in the form of a physical marker or metaphorically in speech or writing.

Complete Sentence

A group of words that expresses a complete thought, typically containing a subject and a predicate.

Audience-centered

An approach to communication that tailors the message to the preferences, interests, and expectations of the intended audience.

General Purpose

The broad, overarching goal or intent behind an action, strategy, or communication.