An Increase in the Debt Ratio Will Generally Have No

question 25

Multiple Choice

An increase in the debt ratio will generally have no effect on which of these items?

• A) Business risk.
• B) Total risk.
• C) Financial risk.
• D) Market risk.
• E) The firm's beta.

---

Definitions:

Nash Equilibrium

A concept in game theory where no player can benefit by changing strategies if other players keep theirs unchanged.

Game Theory

The study of mathematical models of strategic interaction among rational decision-makers.

High-Tech Revolution

A period characterized by rapid and profound technological advancements, significantly impacting industries and society.

Market Structures

The organization and characteristics of a market, determining the level of competition and pricing power, such as monopolistic, oligopolistic, and competitive markets.