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Basic Question 1 of 17
Which of the following best describes the equity risk that arises from the capital structure of a firm?
B. Diversifiable risk
C. Systematic risk
D. Business risk
E. Unsystematic risk
A. Financial risk
B. Diversifiable risk
C. Systematic risk
D. Business risk
E. Unsystematic risk
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I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu
Learning Outcome Statements
define and explain leverage, business risk, sales risk, operating risk, and financial risk and classify a risk;
calculate and interpret the degree of operating leverage, the degree of financial leverage, and the degree of total leverage;
analyze the effect of financial leverage on a company's net income and return on equity;
CFA® 2024 Level I Curriculum, Volume 4, Module 35.