Question: Question 6 Why do firms with high operating leverage also have high levered betas? High operating leverage reduces the managerial flexibility of the firm High

Question 6 Why do firms with high operating leverage also have high levered betas? High operating leverage reduces the managerial flexibility of the firm High operating leverage increases the amount of debt of the firm High operating leverage amplifies idiosyncratic shocks High operating leverage increases the sensitivity of earnings to revenue changes High operating leverage increases the cost of capital adjustments

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