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Which of the following statements related to financial risk are correct?

I. Financial risk is the risk associated with the use of fixed assets.

II. Financial risk has no impact on the cost of equity.

III. Financial risk is wholly dependent upon the financial policy of a firm.

IV. Financial risk is the risk that is inherent in a firm's operations.

V. Financial risk is the risk associated with the use of debt.

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M91619484

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