An example of an external factor that affects a corporation's risk or beta, is ________.
A) a change in the financing mix used
B) toxic spills used during takeovers
C) a change in the asset mix
D) a change in top management

Question

Quizplus · Accepted Answer

Toxic spills can lead to unfavorable publicity, lawsuits, and damage to the company's reputation, which can increase the corporation's risk or beta. Choices A, C, and D refer to internal factors, which may also affect the company's risk, but are not directly related to external factors.

An Example of an External Factor That Affects a Corporation's