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If a project has a higher proportion of fixed to variable costs, holding the risk of its revenues constant A its beta will be unaffected,

If a project has a higher proportion of fixed to variable costs, holding the risk of its revenues constant

A its beta will be unaffected, since beta does not measure the sensitivity of the project's cash flows to market risk

B .its beta will be higher, hence its cost of capital will be higher.

C its financial leverage will be higher.

D. its beta will be lower, hence its cost of capital will be lower.

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