Espinosa Coffee & Trading, Inc.'s common stock measured beta is calculated to be 0.75.

The market beta is, of course,1.00 and the beta of the industry of which the company is a part is1.10. If Merrill Lych were to calculate an "adjusted beta" for Espinosa's common stock, that adjusted beta would most likely be.          .

less than0.75

more than0.75, but less than1.10

equal to1.10

equal to0.95 {i.e., (1/3) x (0.75 +1.00 +1.10)}