Which statement is correct concerning macro risk exposure?
A)all firms face equal macro risk exposure
B)only portfolios of stocks face macro risk exposure
C)macro risk exposure affects the cost of capital
D)macro risk exposure is less important to diversified investors than micro risk exposure

Question

Quizplus · Accepted Answer

Macro risk exposure affects a firm's cost of capital and can impact the overall economy. It is not the same for all firms, and is not limited to portfolios of stocks. While micro risk exposure is important to diversified investors, macro risk exposure cannot be ignored.

Which Statement Is Correct Concerning Macro Risk Exposure