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All Else the Same, Actions or Events That Cause Firm

Question 222

Multiple Choice

All else the same, actions or events that cause firm returns to be less correlated with changes in the economy will _______ the firm's systematic risk.


A) Increase.
B) Decrease.
C) Not affect.
D) Affect (direction not determinable) .
E) Increase the firm's unsystematic risk but not affect.

Correct Answer:

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