Market Risk Refers to the Tendency of a Stock to Move

question 105

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:

Bacteria

Single-celled, prokaryotic microorganisms that come in various shapes and can inhabit a wide range of environments, including soil, water, and living in or on other organisms.

Fungi

A kingdom of complex organisms that include molds, yeast, mushrooms, and more, distinct from plants and animals.

Niche Overlap

Refers to the condition where two or more species occupy overlapping niches, sharing resources in the same environment, which can lead to competition.

Mutualism

A symbiotic relationship between two species where both benefit from the association.