Question: If the debt beta is zero, then the relationship between the equity beta and the asset beta is given by A) equity beta = 1

If the debt beta is zero, then the relationship between the equity beta and the asset beta is given by

A) equity beta = 1 + [(beta of assets)/(debt-equity ratio)].

B) equity beta = (1 debt-equity ratio)(beta of assets).

C) equity beta = (1 + debt-equity ratio)(beta of assets).

D) equity beta = 1 + (debt-equity ratio/ beta of assets).

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