According to MM's proposition II the expected return on equity is equal to the expected return on assets for a levered firm.

Name: According to MM's proposition II the expected return on equity is equal to the expected return on assets for a levered firm.
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According to MM's Proposition II, the expected return on equity for a levered firm is higher than the expected return on assets due to the financial risk associated with debt.

According to MM's Proposition II the Expected Return on Equity