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Discussing leverage and systematic risk with taxes and a fixed debt to value ratio, we know that bu = Be + BDP. Which of the

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Discussing leverage and systematic risk with taxes and a fixed debt to value ratio, we know that bu = Be + BDP. Which of the following statements are true. Select only one answer. The asset beta is the systematic risk associated with the company's assets In the pure-play approach we cannot estimate the equity bata using observed stock returns The unlevered beta is also called the equity beta It is an oversimplification to assume that the debt beta is zero

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