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Question 8 Which of the following statements about risk and return is not true? O A. Bankruptcy risk arises at very high levels of gearing
Question 8 Which of the following statements about risk and return is not true? O A. Bankruptcy risk arises at very high levels of gearing O B. An increase in gearing leads to an increase in financial risk O C. If two shares have the same return, a rational investor chooses the share with the lowest risk O D. Ordinary shareholders own the company and so face the lowest amount of risk O E. Traded bonds have a lower risk and return than preference shares O F. Risk can be measured using standard deviation
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