Which of the following statements about a firm's equity beta is true? Select the best one.

I.	If the firm starts investing in projects with lower market risk its equity beta will likely increase.

II.	If the firm starts investing in projects with lower market risk its equity beta will likely decrease.

III.	If the firm reduces its leverage ratio its equity beta will likely increase.

IV.	If the firm reduces its leverage ratio its equity beta will likely decrease.

V.	(I) and (III) are correct.
	VI.	(II) and (IV) are correct.