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If a Firm's Beta Was Calculated as 1

Question 46

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.
E) zero or less.

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