Firm A has a beta of 1.5. Firm B has a beta of 1. Both...
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Finance
Firm A has a beta of 1.5. Firm B has a beta of 1. Both firms A and B are in the same industry, i.e. have similar assets. Which of the following could be a reason why Firm A has a higher beta than Firm Bs? I. Firm A has high operating leverage compared to Firm B
II. Firm A has more cyclical revenues than Firm B III. Firm A has high financial leverage compared to Firm B
I only II only I and II II and III I, II and III
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