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A company is comprised of 50% bonds, 50% equity, and the beta of the bonds is 0.0 and the beta of the equity is 1.2.
A company is comprised of 50% bonds, 50% equity, and the beta of the bonds is 0.0 and the beta of the equity is 1.2. If the company's structure changes so that it is now 75% bonds and 25% equity, what happens to the beta of the company's assets? Responses It decreases by 0.3 It decreases by 0.3 It increases by 0.3 It increases by 0.3 It increases by 0.9 It increases by 0.9 It
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