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  3. firm a has a beta of 1.5. firm b has a beta of 1.

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? Firm A has more cyclical revenues than Firm B Firm A has high financial leverage compared to Firm B Firm A has low financial leverage compared to Firm B I only II only I and II II and III I, II and III

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