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For a Particular Share, a 1 Per Cent Change in the Market

Question 8

Multiple Choice

For a particular share, a 1 per cent change in the market index generally leads to a return of less than 1 per cent on the company's share. What can be concluded about the value of beta (fi) ?


A) fi > 1
B) fi = - 1
C) fi < 1
D) fi = 1

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