Which of the Following Is a True Statement

question 11

Multiple Choice

Which of the following is a true statement?

• A) The risk and return that a firm experienced in the past is also the risk level for its future.
• B) Firms can quite possibly change their stocks' risk level by substantially changing their business.
• C) If a firm takes on riskier new projects over time, the firm itself will become less risky.
• D) If a firm takes on less risky new projects over time, the firm itself will become more risky.

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Definitions:

Sedimentary Unit

A layer of sedimentary rock with distinguishable characteristics that set it apart as a visually identifiable segment of a stratigraphic sequence.

Pluton

A body of intrusive igneous rock that solidified below the surface of the earth.

Shear Zone

A region of the Earth's crust where rocks have been deformed by shear stress, leading to the alteration of their structure and the development of foliation.

Supercontinent

A large landmass that includes more than one continental core, which in Earth's history has periodically merged and then broken apart.