a. I only b. II only c. Both I and II d. Neither I nor II a. I and II b. II and

Question

       a. I only
       b. II only
      c. Both I and II
      d. Neither I nor II

     a. I and II
     b. II and III
     c. II, III and IV
     d. All of the above
     e. None of the above

    a. I only
    b. II only
    c. III only
    d. II and III
    e. All of the above

1. Which of the following is/are FALSE?

I. A firm's leveraged beta will always be greater than its unleveraged beta.
II. The larger the amount of debt in a firm's capital structure, the greater will be the firm's leveraged beta.

Explanation / Answer

1)

C) both I and II

2)

b) I,III, and IV

3)

C) II ,III and IV

4)

d) II and III

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