Increasing the Operating or Business Risk of a Firm Will

question 50

Multiple Choice

Increasing the operating or business risk of a firm will increase the variability of:

• A)return on equity (ROE).
• B)return on investment (ROI).
• C)there is no effect on the variability of ROE and ROI.
• D)both the ROE and ROI

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Definitions:

Armenians

Refers to the people of Armenia, a nation in the South Caucasus region of Eurasia, or the Armenian diaspora worldwide.

Darfur Region

A region in western Sudan known for its complex humanitarian crisis, including conflict, displacement, and human rights abuses.

Tutsis

An ethnic group found primarily in Rwanda and Burundi, historically involved in conflict with the Hutu majority in Rwanda, notably during the 1994 genocide.

Ethnicity

A category of identifying individuals based on common linguistic, cultural, ancestral, or national characteristics.