Which of These Items Will Not Generally Be Affected by an Increase

question 42

Multiple Choice

Which of these items will not generally be affected by an increase in the debt ratio?

• A) total risk.
• B) financial risk.
• C) market risk.
• D) the firm's beta.
• E) business risk.

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Definitions:

Excludable

A characteristic of a good or service that allows its owner to prevent others from using it without paying for it.

Free Rider

A person who receives the benefit of a good but avoids paying for it

Free-Rider

An individual who benefits from resources, goods, or services without paying for the cost of the benefit.

Market Forces

The economic factors affecting the price, demand, and availability of goods and services in a free market, primarily driven by supply and demand.