If a Firm's Beta Was Calculated as 1

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.
E) zero or less.