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:

Stressful Events

Situations or occurrences that cause a significant amount of stress or discomfort to an individual.

General Adaptation Syndrome

A three-stage response that the body goes through when exposed to stress, described as alarm, resistance, and exhaustion stages.

Exhaustion Phase

The final stage of the body's response to stress, where all energy resources have been depleted, leading to a decreased ability to resist stressors and potential burnout.

Multiple Sclerosis

A chronic autoimmune disease affecting the central nervous system, leading to demyelination, inflammation, and diverse neurological symptoms.