refers to the variability in the firm's operating earnings.

Question

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Business risk refers to the variability in a firm's operating earnings, which can be caused by various factors such as competition, changes in demand, and technological advancements. Financial risk, on the other hand, refers to the risk of a company not being able to meet its financial obligations, such as debt payments. Marketability risk is the risk that an asset cannot be sold quickly or easily without a significant loss in value. Interest rate risk is the risk that changes in interest rates will result in losses for investors.

Refers to the Variability in the Firm's Operating Earnings