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Exam Question

Risk in capital budgeting may be defined as

  • 1) the chance the firm won’t be able to meet its debt obligations
  • 2) the possibility of the firm losing its competitive position
  • 3) the variability of possible outcomes from a given investment
  • 4) the possibility that the firm can’t obtain funds needed to finance the desired asset

View Answer

Answer 3) the variability of possible outcomes from a given investment

Practice set and Exam Quiz

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