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Question

The following group of ratios primarily measures risk ________________.

A
Liquidity, activity, and profitability
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B
Liquidity, activity, and common stock
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C
Liquidity, activity, and debt
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D
Activity, debt, and profitability
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Solution

The correct option is D Activity, debt, and profitability
Some of the financial ratios that are most commonly used by the investors and analysis to access a company's financial risk level and overall financial health are debt-to-capital ratio, interest coverage ratio, activity ratio, and profitability ratios.

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