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If a Firm's Beta Was Calculated as 1

Question 76

Multiple Choice

If a firm's beta was calculated as 1.35 in a regression equation, a commonly-used adjustment technique would provide an adjusted beta of


A) equal to 1.35.
B) between 0.0 and 1.0.
C) between 1.0 and 1.35.
D) greater than 1.35.

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