A Decrease in the Possible Range of %Age Stock Returns

question 100

Multiple Choice

A decrease in the possible range of %age stock returns can be achieved by:

• A)A decrease in the firm's financial leverage
• B)An increase in the firm's asset risk
• C)An increase in the firm's business risk
• D)A decrease in the firm's debt beta

Recognize the importance of scenario analysis in planning for risk mitigation.

Understand the dual purpose of financial plans in predicting future performance and setting goals.

Discuss the challenges in planning for new versus existing businesses.

Appreciate the impact of technology on the financial planning process.