Which One of These Statements Related to Beta Is Correct

question 47

Multiple Choice

Which one of these statements related to beta is correct?

• A)A firm with a given sales cyclicality can reduce its beta by replacing variable production costs with fixed costs.
• B)The beta of debt is generally assumed to equal the market beta.
• C)Highly cyclical stocks tend to have low betas.
• D)The levered beta of equity exceeds the asset beta.
• E)Stocks with a high variance must have a high beta.

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Definitions:

Neoplasm Table

A reference tool used in medical coding that lists different types of tumors and their corresponding codes.

Ca In Situ

"Carcinoma in situ," a term for early-stage cancer where the malignant cells are still contained in the place of origin without spreading.

Adjacent Cells

Cells located next to or near each other, often referring to their spatial relationship in tissues or cultures.

Tumor

An abnormal mass or growth of tissue that can be benign (non-cancerous) or malignant (cancerous).