One Factor That Can Affect the Market Risk of a Project

question 50

Multiple Choice

One factor that can affect the market risk of a project is its degree of operating leverage,which is:

• A)the relative proportion of operating assets versus non-operating assets.
• B)the relative proportion of operating assets versus equity.
• C)the relative proportion of operating expenses versus non-operating expenses.
• D)the relative proportion of fixed versus variable costs.

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Definitions:

Depression

A mood disorder characterized by ongoing depressive feelings or a disengagement with usual pursuits, crucially undermining daily activities.

Bipolar

A disorder characterized by significant mood swings including manic and depressive episodes.

Communication

The act of conveying meanings from one entity or group to another through the use of mutually understood signs, symbols, and semiotic rules.

Delusions

False beliefs held with strong conviction despite superior evidence to the contrary, often found in psychological conditions.