Analysts Deciding Between Investments Must Consider the Comparative Risks

Multiple Choice

Analysts deciding between investments must consider the comparative risks.Which of the following factors affect the risk of business firms?

A) Economy-wide factors, such as increased inflation or interest rates, unemployment, and recessions.
B) Industry-wide factors, such as increased competition, lack of availability of raw materials, changes in technology, and increased government regulatory actions, such as anti-trust or clean environment policies.
C) Firm-specific factors, such as labor strikes, loss of facilities due to fire or other casualty, and poor health of key managerial personnel.
D) The amount of liquid resources available to the firm to run smoothly and effectively.
E) all of the above