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    Foundations of Financial Management
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    Exam 11: Cost of Capital
  5. Question
    A Firm with a Higher Beta Than Another Firm Will
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A Firm with a Higher Beta Than Another Firm Will

Question 96

Question 96

True/False

A firm with a higher beta than another firm will have a higher required rate of return.
Beta is a direct measure of risk, so Kj must be higher.

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