Which of the following statements concerning financial risk are correct? 1. Financial risk is the risk associated with the use of debt financing II. As financial risk increases so too does the cost of equity. III. Financial risk is wholly dependent upon the financial policy of a firm 1. Financial risk is the risk that is inherent in a firm's operations if it uses no debt. land Ill only Oil and Ill only LII, and Ill only I, II, III and IV