Holding All Other Factors Constant, If a Firm Increases Its

Multiple Choice

Holding all other factors constant, if a firm increases its current assets relative to total assets,

A) it increases return and reduces riskits financing costs will fall.
B) it increases return and increases risknet working capital will rise.
C) has no effect on return and reduces risk.
D) it reduces return and increases risk.
E) none of above are correct