Which of the Following Statements Is Correct Regarding Total Risk

question 108

Multiple Choice

Which of the following statements is correct regarding total risk?

• A) The coefficient of variation is a measure of the firm's total risk.
• B) All firms have the same amount of total risk because they are all exposed to the same market risk.
• C) Conglomerates will have less total risk than a firm that has one line of business.
• D) None of these choices are correct.

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