One Factor That Can Affect the Market Risk of a Project

question 50

Multiple Choice

One factor that can affect the market risk of a project is its degree of operating leverage,which is:

• A)the relative proportion of operating assets versus non-operating assets.
• B)the relative proportion of operating assets versus equity.
• C)the relative proportion of operating expenses versus non-operating expenses.
• D)the relative proportion of fixed versus variable costs.

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Definitions:

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