24. Which of the following are microeconomics variable that help define and explain the
discipline of finance?
a) risk and return
b b) capital structure
c) inflation
d) all of the above
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2
Answer:
(D) all of the above
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1
Option a is the correct answer.
Risk and return is the microeconomic variable that helps define and explain the discipline of finance.
- Capital structure and inflation are macroeconomic variables.
- Microeconomics deals with the subject of individual choice under risk and uncertainity and also tells about risk return trade off for choice of a portfolio.
- It also helps in decision making under risk.
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