Use the Following Statements to Answer This Question

Multiple Choice

Use the following statements to answer this question:
I.Unlevered beta represents the systematic risk of the equity portion of the firm only.
II.The levered beta requires a linear adjustment with respect to the debt to equity ratio.

A) I and II are correct.
B) I and II are incorrect.
C) I is correct and II is incorrect.
D) I is incorrect and II is correct.