In theory the decision maker should view market risk as being of primary importance. However, within-firm, or corporate, risk is relevant to a firm's
a. Well diversified stockholders, because it may affect debt capacity and operating income.
b. Management, because it affects job stability.
c. Creditors, because it affects the firms credit worthiness.
d. Statements a and c are correct.
e. All of the statements above are correct.
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