The Beta of Debt Is Commonly Considered to Be

question 15

Multiple Choice

The beta of debt is commonly considered to be:

• A)equal to the market beta.
• B)one-half of the equity beta.
• C)equal to the asset beta.
• D)zero.
• E)one.

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Definitions:

Tax Return

A form filed with a government body, reporting income, expenses, and other pertinent tax information, used to calculate tax liability.

Mens Rea

A legal principle referring to the state of mind of a person who commits a crime, indicating intent or knowledge of wrongfulness.

Actus Reus

The physical act of committing a crime, as opposed to the mental intent (mens rea) to commit the act.

Mens Rea

A legal term referring to the intent or knowledge of wrongdoing that constitutes part of a crime.