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Which of the following statements is FALSE? estion 5 yet wered ked out of Select one: a. Franco Modigliani and Merton Miller argued that with

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Which of the following statements is FALSE? estion 5 yet wered ked out of Select one: a. Franco Modigliani and Merton Miller argued that with perfect capital markets, the total value of a firm should not depend on its capital structure Flag stion b. Leverage decreases the risk of the equity of a firm, c. It is inappropriate to discount the cash flows of levered equity at same discount rate that we use for unlevered equity d. Because the cash flows of the debt and equity sum to the cash flows of the project, by the Law of One Price the combined values of debt and equity must be equal to the cash flows of the project Which of the following statements is FALSE? ut of Select one: a. Beta is the expected percent change in the excess return of the security for a 1% change in the excess return of the market portfolio. b. Beta measures the diversifiable risk of a security, as opposed to its market risk, and is the appropriate measure of the risk of a security for an investor holding the market portfolio c. Beta represents the amount by which risks that affect the overall market are amplified for a given stock or investment d. It is common practice to estimate beta based on the historical correlation and Volatilities

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