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 it will definitely have a beta which is greater than 1.0.

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Quizplus · Accepted Answer

This is true. Stocks with higher market risk will have a beta greater than 1.0 because they tend to move in the same direction as the overall market, which has a beta of 1.0.

Market Risk Refers to the Tendency of a Stock to Move