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.

---

Definitions:

Resting Potential

The state of a neuron when it is not being stimulated or activated; it is the electrical potential of a neuron's interior relative to its surroundings when the neuron is not transmitting a signal.

Inactive Neuron

A neuron that is not currently firing or transmitting information.

Norepinephrine

A neurotransmitter and hormone that is involved in response to stress, increases arousal, and alertness, and plays a role in the body's "fight or flight" reaction.

Urogenital Tract

The anatomical system of the urinary and reproductive organs, often considered together due to their close proximity and shared functions in some contexts.