In this paper, the effect of rotation and magnetic field on thermal stability of a layer of ferromagnetic fluid heated from below has been investigated. For a fluid layer between two free boundaries, an exact solution is obtained using a linearized stability theory and normal mode analysis. For the case of stationary convection, it is found that magnetic field and rotation have stabilizing effect on the thermal stability of the system. The principle of exchange of stability is not valid for the problem under consideration, whereas in the absence of rotation and magnetic field, it is valid.

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