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Suppose Microsoft has a beta of 0.87. If the market index increased by 5%, then based on the beta value, what could be the change

Suppose Microsoft has a beta of 0.87. If the market index increased by 5%, then based on the beta value, what could be the change in the share prices of Microsoft?

  1. The share price of Microsoft share price could increase by 2%.
  2. The share price of Microsoft increased by 5%.
  3. The share price of Microsoft increased by 9%.
  4. The share price of Microsoft decreased by 3%.

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