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

question 5

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:

Standard Quantifier

A logical operator that specifies the quantity of specimens in the domain of discourse that satisfy a given condition.

Some

An unspecified amount or number of people or things.

Non-categorical

Relating to statements or propositions that do not fit into the standard categorical framework of logic, often not expressing a straightforward assertion about sets and their members.

Proposition

An expression that conveys a judgment or opinion.