Systematic risk associated with a single stock is defined as the variation in the stock price explained by ________.
A)market movements
B)the firm's earnings potential
C)acquisition strategies
D)net losses

Question

Quizplus · Accepted Answer

Systematic risk is influenced by macroeconomic factors such as changes in interest rates, inflation, and overall market movements. Therefore, the variation in a stock's price can be explained by market movements rather than the firm's specific earnings potential, acquisition strategies, or net losses.

Systematic Risk Associated with a Single Stock Is Defined as the Variation