Une concern With using sector - average betas, even If you adjust for financial leverage , is that you are assuming that the operating leverage for your firm is similar to that of the other firms . Assume that 70% of the costs in your company are fixed costs , whereas only 50% of the costs in the average company in the sector are fixed costs . If the unlevered beta for the sector is 0. 80 . what would you expect the unlevered beta for your company to be ?" a. Higher than 0. 80 b. Lower than 0. 80 C . About 0. 80 Bonus : Can you estimate the operating - leverage corrected beta ?"