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 above are correct.
E) Only answers a and c are correct.

Question

Quizplus · Accepted Answer

All of the options provided (A, B, C) are correct because within-firm or corporate risk can impact a firm's debt capacity and operating income (relevant to well-diversified stockholders), affect management's job stability, and influence the firm's creditworthiness (important to creditors).

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