The beta of a firm is likely to be high under what two conditions? . High cyclic
ID: 2749322 • Letter: T
Question
The beta of a firm is likely to be high under what two conditions?
.
High cyclical business activity and low operating leverage.
High cyclical business activity and high operating leverage.
Low cyclical business activity and low financial leverage.
Low cyclical business activity and low operating leverage.
None of the above.
A.High cyclical business activity and low operating leverage.
B.High cyclical business activity and high operating leverage.
C.Low cyclical business activity and low financial leverage.
D.Low cyclical business activity and low operating leverage.
E.None of the above.
Explanation / Answer
B.high cyclical buisness activity and high operating leverage.
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