Asked by Yasmin Garcia on Jun 19, 2024
Verified
Financial risk is the risk that is inherent in a firm's operations.
Financial Risk
The chance of incurring a loss in capital in an investment or business operation.
- Acquire knowledge about how a firm's business risk and financial policy affect its equity beta.
Verified Answer
FZ
Fiona ZhangJun 21, 2024
Final Answer :
False
Explanation :
Financial risk primarily refers to the risk associated with the use of financial leverage and debt financing, rather than the operational aspects of a firm.
Learning Objectives
- Acquire knowledge about how a firm's business risk and financial policy affect its equity beta.