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22. The chief nancial officer of Adobe Systems: a growing software manufacturing firm, has approached you for some advice regarding the beta of his company.

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22. The chief nancial officer of Adobe Systems: a growing software manufacturing firm, has approached you for some advice regarding the beta of his company. He subscribes to a service which estimates Adobe System's beta each year and he has noticed that the beta estimates have gone down every year since 1991: 2.35 in 1991 to 1.40 in 1995. He would like the answers to the following questions: a. Is this decline in beta unusual for a growing rm? b. "illihj.r would the beta decline over time? c. Is the beta liker to keep decreasing over time

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