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Q: When debt to equity ratio rises why does the asset beta not change?
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When debt-to-equity ratio rises why does the asset beta not change?

Asset Beta measures the inherent riskiness of the underlying assets with respect to the market. The equity and debt only affect the inherent riskiness of the firm, but the additional debt has no influence on the underlying riskiness of the assets.For instance, if you are in the hotel business, why should the amount of debt you have affect your ability to get visitors stay at your hotel? high debt does, however, affect the underlying riskiness of the equity (it is riskier to hold shares of a firm with large amounts of debt). therefore, the equity beta does change.


Leverage is increased as the ratio of debt to common stock rises?

True


Relationship between average propensity to consume and marginal propensity to consume?

APCMPCIt refers to the ratio of absolute consumption absolute income at a particular point of time.It refers to the ratio of change in consumption to change in income; MPC is the rate of change in APC.APC is useful in long periodMPC is useful in short-periodIn the long period APC=MPC.In the short period there is no change in MPC and MPC


When bread dough rises when yeast is added is it a chemical change?

A chemical change


Hot air rises because of a change in its?

temperature


When the temperature rises how does the number and size of the bubbles change?

sfgytd


What is fixed rate home equity line of credit?

Home equity credit allows funds to be drawn against the value of the home. Fixed rate loans ensure that the repayable value will not increase for a fixed term, so protecting against interest rate rises.


When there is surplus prices tend to rises true or false?

do the equilibruim have to change for the supply or demand change


How does the temperature of the air change as you increase in altitude in the troposphere?

The temp rises


When bread dough rises when yeast is added is it a chemical change why?

chemical


When does water change to a gas?

it would be precipitation. (as the gas then rises it starts precipitation)


What causes your chest size to change when you breathe in?

The air pressure rises in your chest