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Which of the following statements is TRUE? Leverage reduces the risk of equity, even when there is no risk that the firm will default, Leverage

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Which of the following statements is TRUE? Leverage reduces the risk of equity, even when there is no risk that the firm will default, Leverage increases the risk of debt, even when there is no risk that the firm will default. Leverage increases the risk of equity, even when there is no risk that the firm will default. Leverage reduces the risk of debt, even when there is no risk that the firm will default

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