Referring to the manipulation of the numbers

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Referring to the manipulation of the numbers, from our discussion last week, most of us can conclude that "risk is risk" and that while yes, there are certain forms of risk (unsystematic) that can be diversified, generally it still exists and cannot be avoided. So, what would you and others say to any company that believes they can somehow manipulate their risk in order to have a favorable cost of capital? Doesn't this suggest that there is the possibility of unethical actions to be taken?

Reference no: EM13763822

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