The beta of a firm is determined by which of the following firm characteristics?
A)Cycles in revenues
B)Operating leverage
C)Financial leverage
D)All of the above.
E)None of the above.

Question

Quizplus · Accepted Answer

Beta is determined by all of the above firm characteristics, including cycles in revenues, operating leverage, and financial leverage. These factors contribute to the volatility of a company's earnings and thus impact the beta coefficient.

The Beta of a Firm Is Determined by Which of the Following