Cause company beta to be high

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Reference no: EM131180296

Which of the following will cause a company’s Beta to be high?

A) High volatility of total cash flows, which may or may not be highly correlated with the market

B) The company generally sells a lot of goods when the market is doing well, and very few goods when the market is doing poorly

C) The company generally sells very few goods when the market is doing well, and a lot of goods when the market is doing poorly

D) Both A and B

PLEASE EXPLAIN IT

Reference no: EM131180296

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