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.

---

Definitions:

Cellulose

A complex carbohydrate that constitutes the primary structural component of plant cell walls.

Mechanical Suffocation

The obstruction of air flow and inability to breathe due to external mechanical forces.

Unintentional Injuries

Wounds sustained unintentionally, commonly due to mishaps.