Individual stocks are:
A) exposed to the same amount of market risk.
B) exposed to differing amounts of market risk.
C) not exposed to market risk; only the general economy is subject to market risk.
D) exposed to differing amounts of market risk but the same amount of specific risk.

Question

Quizplus · Accepted Answer

Individual stocks are exposed to differing amounts of market risk because they are influenced by factors such as company-specific news, industry trends, and overall economic conditions. While some stocks may be more affected by market movements than others, all stocks are also subject to specific risk factors, such as changes in management, product recalls, or legal issues that can affect the performance of the stock.

Individual Stocks Are