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which of the following statements about beta is wrong. a) highly cyclical stocks have higher beta. b) firms with higher operating leverage are less likely

which of the following statements about beta is wrong.

a) highly cyclical stocks have higher beta.

b) firms with higher operating leverage are less likely to have higher betas.

c) other things remaining equal an increase in financial leverage will increase the equity beta.

d) equity beta increase as fixed costs rise and variable costs fall.

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