In a Stock Market, a Riskier Stock Typically Has

question 173

Multiple Choice

In a stock market, a riskier stock typically has:

• A) a higher covariance with the market as a whole.
• B) a lower covariance with the market as a whole.
• C) a higher correlation with some stocks and a lower correlation with other stocks.
• D) a lower correlation with the market as a whole.

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Definitions:

Generative

Relating to the capacity of something to produce or create, often used in the context of grammar and linguistics to describe the ability to generate an infinite number of sentences.

Structured

Organized and planned in a methodical way, often referring to schedules, research designs, or informational frameworks.

Structured

means being organized or arranged according to a predetermined or systematic plan.

Generative

In various fields, generative denotes the capacity to produce or create something, often in a way that can spontaneously derive complex structures from simpler rules.