A Firm's Systematic Risk Will ____________ as Its Debt/equity Ratio

question 66

Multiple Choice

A firm's systematic risk will ____________ as its debt/equity ratio __________.

• A) Increase; increases.
• B) Decrease; increases.
• C) Remain unchanged; decreases.
• D) Remain unchanged; increases.
• E) First increase, and then decrease; increases.

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Definitions:

Socialization Roles

The behaviors and expectations that are learned by individuals to fit into their society, including roles based on their age, gender, and social position.

Active

Being engaged in action or exerting power or force; not passive.

Social Development

The process by which individuals acquire the values, behaviors, and skills necessary to function effectively in society.

Differentiated

Having developed a specialized form or function from an initial homogenous state, often in the context of cells or organisms adapting to specific roles.