Multiple Choice
Which of the following factors will increase the risk level of an investment?
I. a firm's decision to use a high percentage of debt financing
II. an economic situation in which consumer prices are rising at a rapid rate
III. the ability to trade the investment in a broad market rather than in a thin market
IV. unstable currency values
A) I and II only
B) I, II and IV only
C) II and IV only
D) I, III and IV only
Correct Answer:
Verified
Correct Answer:
Verified
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