Which Statement Is Correct Concerning Macro Risk Exposure

question 103

Multiple Choice

Which statement is correct concerning macro risk exposure?

• A)all firms face equal macro risk exposure
• B)only portfolios of stocks face macro risk exposure
• C)macro risk exposure affects the cost of capital
• D)macro risk exposure is less important to diversified investors than micro risk exposure

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Definitions:

Price Ceilings

Price Ceilings are government-imposed limits on how high a price can be charged for a product, service, or commodity, often implemented to protect consumers from excessively high costs but can lead to shortages.

Equilibrium Price

A price where the supplied goods quantity is identical to the demanded goods quantity.

Law Of Demand

An increase in a product’s price will reduce the quantity of it demanded, and conversely for a decrease in price.

Quantity Demanded

The total amount of a good or service that consumers are willing to purchase at a given price over a specified period.