Comparing Two Otherwise Equal Firms,the Beta of the Common Equity

question 40

Multiple Choice

Comparing two otherwise equal firms,the beta of the common equity of a levered firm is ____________ than the beta of the common equity of an unlevered firm.

• A)equal to
• B)significantly less
• C)slightly less
• D)greater
• E)None of the above.

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Definitions:

Sense Of Religiosity

A personal or communal system of beliefs, practices, and values relating to the search for existential meaning, often connected with a faith in a higher power or spiritual elements.

Death Anxiety

The fear or apprehension of death or dying.

Well-being

A state of being comfortable, healthy, or happy, often considered holistically including physical, emotional, and social aspects.

Neuroticism

A personality trait characterized by emotional instability, anxiety, moodiness, worry, and fear.