Question: which option and why? The use of leverage: increases both the asset and the equity betas. decreases the equity beta and increases the asset beta.

which option and why?

The use of leverage: increases both the asset and the equity betas. decreases the equity beta and increases the asset beta. decreases both the asset and the equity betas. decreases the equity beta but does not affect the asset beta. increases the equity beta but does not affect the asset beta

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