Which of the following statements about relevant and irrelevant risks is true??
A. ?Relevant risk includes inflation risk, but excludes political risk.
B. ?Relevant risk includes interest rate risk, but excludes default risk.
C. ?Relevant risk includes liquidity risk, but excludes exchange rate risk.
D. ?Relevant risk includes exchange rate risk, but excludes inflation risk.
E. ?Relevant risk includes default risk, but excludes political risk.
Answer: B
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A. $180 understated. B. $162 overstated. C. $18 understated. D. $162 understated. E. $180 overstated.
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Indicate whether the statement is true or false
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a. performance that is incomplete but that does not defeat the purpose of the contract but entitles the injured party to damages. b. wrongful failure to perform the terms of a contract that gives rise to a right to damages by the injured party. c. a breach that prevents performance by either party. d. None of these.
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