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In theory the decision maker should view market risk as being of primary importance. However, within-firm, or corporate, risk is relevant to a corporation

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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