Figure 27-4 -Which of the Following Is a Source of Market Risk

question 33

Multiple Choice

Figure 27-4
-Which of the following is a source of market risk?

• A)Holding stocks in many companies carries the risk of a reduced average return.
• B)Real GDP varies over time and sales and profits move with real GDP.
• C)When a paper producer has declining sales, it is likely that so will other paper producers.
• D)If stockholders become aggravated with the way a CEO runs a company, the price of that company's stock might fall in the stock market.

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Definitions:

Budget Management

The process of planning, organizing, directing, and controlling the financial resources and spending of an organization or project to achieve its objectives.

Strategic PR Objectives

Specific goals set by public relations professionals to guide communication efforts and measure success in influencing public perception and achieving organizational goals.

Corporate Strategy

The broad strategy and orientation of a company, along with how its different business units cooperate to accomplish specific objectives.

Product Market

The marketplace where a specific product is sold, encompassing the potential customers and competitors within that sector.