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An Example of an External Factor That Affects a Corporation's

question 5

Multiple Choice

An example of an external factor that affects a corporation's risk or beta, is ________.


Definitions:

Inflation

The speed at which the overall price level for goods and services increases, thereby diminishing the buying power.

Shoeleather Costs

The resources wasted when inflation encourages people to reduce their money holdings.

Money Holdings

The amount of cash or liquid assets that a person or entity possesses at any given time.

Money Supply

The whole amount of money resources available in an economy at a given interval.

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