b. Abbot is a well known company in the pharmaceutical industry. Based on the monthly data for last four years, January 2016 to December 2020, its beta appears equal to 1.75. During this period, the company has deployed an average debt to equity ratio of a around 40 percent in its capital structure. Looking at the challenges being posed by new patent regime, the company has realized the need for making more investment in research and development activities. For meetings its funding requirement, the company is planning to raise additional funds from the market. The CFO of the company is exploring the option 2 of raising the debt level to 60 percent. However, he is concerned that a raising additional debt may increase the risk proposition of the company, as measured by beta. Calculate the beta of the firm at 50 percent and 60 percent debt level and comment upon the increase in the risk level