Question: Explain the interrelation between the CAL, Leverage and the reward to risk ratio. [12.5 marks] Explain how changes in the debt-to-equity ratio change the firm's

Explain the interrelation between the CAL, Leverage and the reward to

Explain the interrelation between the CAL, Leverage and the reward to risk ratio. [12.5 marks] Explain how changes in the debt-to-equity ratio change the firm's equity beta. (12.5 marks]

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