A Stock That Has a High Covariance with Market Conditions

question 125

Multiple Choice

A stock that has a high covariance with market conditions is considered risky because:

• A) the stock belongs to a small company.
• B) the stock does not fluctuate in value.
• C) the stock moves against the market.
• D) when the market is declining that stock will decline too.

---

Definitions:

Cognitive-Behavioral Models

Psychological frameworks focusing on understanding and changing maladaptive cognitions and behaviors to treat disorders.

Motivations

The reasons or driving forces behind an individual's actions, desires, and needs.

Reinforcers

Any stimulus which strengthens or increases the probability of a specific response or behavior by providing a consequence an individual finds rewarding.

Syndrome Model

A conceptual approach that describes a syndrome as a set of symptoms occurring together consistently enough to constitute a recognizable condition.