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:

Investment Goods

Physical goods acquired to create value over time by being used in the production of other goods or services.

Base Year

A specific year against which economic growth, inflation, and other economic indicators are measured to assess changes over time.

Real GDP

Gross Domestic Product adjusted for inflation, providing a more accurate reflection of an economy's size and growth by measuring the value of goods and services produced.

Real GDP

Gross Domestic Product after adjustments for inflation; measures the value of all goods and services produced within a country's borders in a specific time period using constant prices.