Question: According to the Hamada ( levered beta ) equation, beta can be decomposed into two parts. Select the answer that correctly describes the nature of

According to the Hamada

(

levered beta

)

equation, beta can be decomposed into two parts. Select the answer that correctly describes the nature of this decomposition.

One portion capturing risk coming from industry choice; the other capturing risk from financial leverage.

One portion capturing operating leverage; second portion capturing financial leverage, and the third portion capturing exposure to international risk.

One portion capturing risk from international exposure; the other capturing risk from domestic exposure.

According to the Hamada (levered beta) equation, beta can be decomposed

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