Which of the Following Statements Is Correct

question 85

Multiple Choice

Which of the following statements is correct?

• A) Leverage reduces the risk of equity even when there is no risk that the firm will default.
• B) Leverage increases the risk of debt even when there is no risk that the firm will default.
• C) Leverage increases the risk of equity even when there is no risk that the firm will default.
• D) Leverage reduces the risk of debt even when there is no risk that the firm will default.

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Definitions:

Contingency Management

A behavior change technique that reinforces positive behaviors with rewards to increase the likelihood of their occurrence.

Behavioral Activation

Behavioral Activation is a therapy approach that focuses on engaging individuals in activities that are aligned with their values and interests to combat depression.

Biofeedback

A technique that uses electronic monitoring to convey information about physiological processes, allowing individuals to gain control over bodily functions that are normally automatic, such as heart rate.

Progressive Muscle Relaxation

A relaxation technique involving tension and relaxation of various muscle groups to reduce stress and anxiety.