In theory, the decision maker should view market risk as being of primary importance. However, within-firm, or corporate, risk is relevant to a firm's
A) Well-diversified stockholders, because it may affect debt capacity and operating income.
B) Management, because it affects job stability.
C) Creditors, because it affects the firm's credit worthiness.
D) All of the answers above are correct.
E) Only answers a and c are correct.

Question

Quizplus · Accepted Answer

Corporate risk is relevant to stockholders, management, and creditors as it affects debt capacity, operating income, job stability, and creditworthiness.

In Theory, the Decision Maker Should View Market Risk as Being