company 1 has a debt-equity ratio of 0.6.

company 2 has a debt-equity ratio of 0.9. If we assume everything else is the same between the 2 companies, the return on company 1 is

A. Equally as volatile as the return on equity for company 2

B. More volatile than the return on equity for company 2

C. Less volatile than the return on equity for company 2

D. Would not be affected by the debt-equity ratio.

E. None of the above.