LFC is considering outsourcing its facilities management. This will help replace the fixed cost of having a facilities management workforce with an hourly fee that it will be paying to a company that will be performing facilities management.. Holding all else constant, what effect would this action have on the beta for the company?

Question $9$ Answer

a$.$

It would go up

b$.$

It would decrease

c$.$

It would not change

d$.$

It would double

Give your reasons