Which of the Following Is a Component of the Liability

question 5

Multiple Choice

Which of the following is a component of the liability stream of a firm?

• A)Inflation rate
• B)Beta
• C)Market risk premium
• D)Default-free interest rates

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Definitions:

Benign

Nonmalignant; not cancerous.

Hypertension

A medical condition characterized by persistently high blood pressure, putting increased strain on the heart and arteries.

Stenotic

Pertaining to stenosis, a condition marked by the abnormal narrowing of a bodily passage or duct.

Stent

A tubular support device implanted in a blood vessel, canal, or duct to prevent or counteract a disease-induced localized flow constriction.