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blsea [12.9K]
3 years ago
5

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.
True
False
Business
1 answer:
Stolb23 [73]3 years ago
4 0

Answer: True.  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.

Explanation: If a stock has a beta that is greater than 1, there is a higher risk for the stock. High risk stocks have a higher potential for return, but are also easier to lose funds from.

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antoniya [11.8K]

Answer:

d. beta did a better job of explaining the returns than standard deviation

Explanation:

Beta measures the systemic risk associated with the particular investment, it do not compute the total risk associated, which is more  logical.

Standard deviation computes the total risk associated.

Some risk is natural, like the risk of floods, natural calamities, earthquake, etc:

That risk shall not counted as for comparison as that is associated universally. Further, the risk associated with particular factors like bankruptcy of a company, or some legal case issue of a company are precisely described by beta coefficient.

Thus, beta provides better details about explaining the returns.

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Answer:

Sunk cost will be = $70

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In the given instance, Damon Rutton Purchased the ticket of $70

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