Figure 27-4 -Which of the Following Is a Source of Market Risk

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.