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A Firm Can Affect Its Beta Risk by Changing the Composition

question 63

True/False

A firm can affect its beta risk by changing the composition of its assets and by modifying its use of debt financing, but external factors do not have any bearing on a firm's beta. 


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Safety

The condition of being protected from or unlikely to cause danger, risk, or injury.

Harmony

A state of peacefulness or agreement in feelings, actions, ideas, or interests among individuals or groups.

Antitrust Laws

Legislation enacted to prevent monopolies, promote competition, and ensure fair business practices in the marketplace.

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A sum of money granted to an individual or organization as a recognition of achievement, a form of settlement, or as compensation for damages.

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