o3"(LP/LR)/P"(I!k(1!aR)#Rka)/R(I!k(1!aR)),
which is the sensitivity of "rm value in percentage terms. The derivative of this
change with respect to k is
Lo3/Lk"Ia/(I!k#Rka)2'0.
This e!ect is positive regardless of the value of a. Note that the relation between
absolute and relative responsiveness is
L(o! )/Lk"L(Po3)/Lk"P[Lo3/Lk]#[LP/Lk](o3 ).