Problem: In theory the decision maker should view market risk as being of primary importance. However, within-firm, or corporate, risk is relevant to a firm's:
1) Well diversified stockholders, because it may affect debt capacity and operating income.
2) Management, because it affects job stability.
3) Creditors, because it affects the firms credit worthiness.
4) Statements a and c are correct.
5) All of the statements above are correct.