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If a firm increases its use of both operating and financialleverage, then you should expect the firm's: a. asset beta to exceed its equity beta.

If a firm increases its use of both operating and financialleverage, then you should expect the firm's:

a. asset beta to exceed its equity beta.

b. beta of debt to exceed 1.0.

c. beta to remain constant as the increased operating leveragewill offset the increased financial leverage.

d. equity beta to increase.

e. debt beta to exceed its equity beta.

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