Financial managers should consider taking ________ financial risk when operating risk is high,but may consider taking ________ financial risk when operating risk is low.
A)less; less
B)less; more
C)more; more
D)more; less

Question

Quizplus · Accepted Answer

When operating risk is high, financial managers should consider taking less financial risk in order to prevent losses from compounding. However, when operating risk is low, they may be more inclined to take on more financial risk in order to potentially increase returns.

Financial Managers Should Consider Taking ________ Financial Risk When Operating