Question 6 Not yet answered If some firms provide better comparisons than others, their betas should be weighted less than those of the less closely matched firms. Marked out of 1.00 F Flag question Select one: True False Question 7 Not yet answered By hedging its risks, a firm can increase its value by increasing its probability of facing financial distress in the future, as the risks increase the expected returns will also increase and as a result the firm's value will also increase. Marked out of 1.00 P Flag question Select one: O True False Question 8 Not yet answered Because of asymmetric treatment of gains and losses, firms may reduce their expected tax liabilities by hedging. Marked out of 1.00 Select one: Flag question True False Question 9 Not yet answered Firms that are subject to high financial distress costs have lower Incentives to hedge. Marked out of 1.00 Select one: P Flag