CFA Practice Question

There are 120 practice questions for this study session.

CFA Practice Question

Financial risk arises from ______.

A. demand (unit sales) variability
B. the use of debt in the capital structure
C. the extent to which the costs of production are fixed
Correct Answer: B

Financial risk arises from the use of debt in the capital structure.

User Contributed Comments 3

User Comment
kalps Financial risk is governed by the amount of debt in the firm
sarath Financial risk is governed by hte use of fixed income securities...like debt and preferred stocks.
johntan1979 A: Sales risk
C: Operating risk
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