Which of the following is not one of the three explanatory variables that determine a firm's market beta?
A) Degree of investing leverage.
B) Degree of operating leverage.
C) Degree of financial leverage.
D) Variability of sales.

Question

Quizplus · Accepted Answer

The three explanatory variables that determine a firm's market beta are the degree of operating leverage, the degree of financial leverage, and the variability of sales. Degree of investing leverage is not a factor in determining a firm's market beta.

Which of the Following Is Not One of the Three