Asked by Matthew Medina on May 09, 2024
Verified
Business risk declines as the systematic risk of a firm's assets increases.
Systematic Risk
The risk inherent to the entire market or market segment, which cannot be mitigated through diversification.
- Determine the dissimilarities between business risk and financial risk, as well as their causal factors.
Verified Answer
AT
Alicia TijerinaMay 16, 2024
Final Answer :
False
Explanation :
Business risk is unrelated to systematic risk, as it pertains to the inherent risks in the operations and environment of a specific company, while systematic risk is market-related and affects all companies.
Learning Objectives
- Determine the dissimilarities between business risk and financial risk, as well as their causal factors.
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