Question: 40. Assuming a company's debt beta is zero, an increase in its debt/equity ratio will A. Increase its asset beta B. Increase its equity beta

 40. Assuming a company's debt beta is zero, an increase in

40. Assuming a company's debt beta is zero, an increase in its debt/equity ratio will A. Increase its asset beta B. Increase its equity beta C. Decrease its asset beta D. Decrease its equity beta E. None of the above

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