Market value leverage is higher than book value leverage

Assignment Help Financial Management

Reference no: EM13895548

True or false

1. If asset A has a standard deviation of .2 and asset B has a standard deviation of .2, then any portfolio that involves positive investment in both asset A and asset B will also have a standard deviation of .2.

2. For most firms, market value leverage is higher than book value leverage.

3. Since interest rates are currently very low, most newly issued corporate bonds are not callable.

Reference no: EM13895548

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