Question 1(1 point) The financial risk of a company depends on its capital structure. Thus it is higher when the proportion of debt financing is higher True False

Question 2(1 point) The total risk of a financial asset is composed of a specific risk and a non-diversifiable risk True False

Question 5(1 point) Joint equity financing is financially more restrictive for the company than debt financing since shareholders participate in the company's decisions while bondholders do not True False