Which of the Following Statements About Relevant Risk and Irrelevant

question 14

Multiple Choice

Which of the following statements about relevant risk and irrelevant risk is correct?

• A)Relevant risk includes inflation risk, but excludes political risk.
• B)Relevant risk includes interest rate risk, but excludes a firm's default risk.
• C)Relevant risk includes economic risk, but excludes exchange rate risk.
• D)Relevant risk includes exchange rate risk, but excludes inflation risk.
• E)Relevant risk includes a firm's default risk, but excludes political risk.

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Definitions:

Title VII

A clause in the Civil Rights Act of 1964 designed to eliminate employment discrimination stemming from a person's race, complexion, religious affiliation, sex, or birthplace.

Hostile Work Environment

A workplace situation where an employee experiences discrimination or harassment that makes the work environment intimidating, hostile, or abusive.

Sexual Harassment

Unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature that affects an individual's employment, interferes with work performance, or creates a hostile work environment.

Americans with Disabilities Act

Legislation enacted in 1990 in the United States to prohibit discrimination and ensure equal opportunity for persons with disabilities in employment, government services, public accommodations, commercial facilities, and transportation.