Which One of the Following Statements Concerning Risk Is Correct

Multiple Choice

Which one of the following statements concerning risk is correct?

A) The financial risk of a firm is NOT affected by the capital structure of that firm.
B) An international firm has less exchange rate risk than a national firm.
C) A firm can lower its financial risk by lengthening the term of its debt.
D) The goal of financial engineering is to totally eliminate the financial risk of a firm.
E) A firm can reduce its financial risk by combining various types of operations.