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$1.50 Most relevant measure of risk
- From Business: General-Business , Economics: General-Economics
- Closed, but you can still post tutorials
- Due on Jan. 02, 2008
- Asked on Dec 20, 2007 at 3:08:19PM
Q:For a publicly held firm, the most relevant measure of risk, theoretically, should be:
a. corporate risk
b. market risk
c. stand-alone risk
d. all of the above.
My notes: Because they are looking for the most relevant, it excludes "D" as an answer. Also Doesn't it depend on from whose viewpoint your looking at this? Corporate risk would be more relevant to Managers, Employees, Creditors, and Suppliers and Market Risk would be important to well diversified stockholders. I think I'd go with "B"
