The Business Risk of a Company

Multiple Choice

The business risk of a company:

A) depends on the company's level of unsystematic risk.
B) is inversely related to the required return on the company's assets.
C) is dependent upon the relative weights of the debt and equity used to finance the company.
D) has a positive relationship with the company's cost of equity.
E) has no relationship with the required return on a company's assets according to M&M theory.