If a Firm's Beta Was Calculated as 1

question 28

Multiple Choice

If a firm's beta was calculated as 1.3 in a regression equation, a commonly-used adjustment technique would provide an adjusted beta of

• A)less than 1.0 but greater than zero.
• B)between 0.3 and 0.9.
• C)between 1.0 and 1.3.
• D)greater than 1.3.

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