Market risk refers to the tendency of a share to move with the general share market.A share with above-average market risk will tend to be more volatile than an average share, and it will have a beta which is greater than 1.0.

Question

Quizplus · Accepted Answer

This statement is true. Market risk refers to the risk inherent in the overall market, and shares with high market risk will tend to move more in line with the market as a whole. Beta, a commonly used measure of market risk, is a measure of how sensitive a share is to movements in the market, with a beta greater than 1.0 indicating above-average market risk.

Market Risk Refers to the Tendency of a Share to Move