You have been hired as financial analyst by ABC Corporation a globally diversified mutual fund. Your

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Question:

You have been hired as financial analyst by ABC Corporation – a globally diversified mutual fund. Your employer is considering buying MC Electronics – a Korean company. Your boss has asked you to estimate beta for MC Electronics. You have decided to use the following model to estimate beta. RNokia = α + β(RM) + ε Discuss how will choose RM?