Which of the Following Correctly Completes This Sentence: All Else

Multiple Choice

Which of the following correctly completes this sentence: All else the same, _____________.

A) The business risk of a firm increases when it takes on a risky project.
B) The business risk of a firm increases when it takes on more debt.
C) The financial risk of a firm decreases when it takes on a risky project.
D) The financial risk of a firm increases when it takes on more equity.
E) The higher the business risk for a firm, the higher the financial risk as well.