Exhibit 62
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 21

Multiple Choice

Exhibit 6.2
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) $$\begin{array} { c c c c c } \text { Stock } & \mathbf { R } _ { \text {it } } & \mathbf { R } _ { \text {mt } } & \mathbf { a } _ { \mathbf { i } } & \text { Beta } \\\hline \mathrm { ABC } & 11.5 & 13.0 & 0 & 0.7 \\\mathrm { XYZ } & 9.0 & 7.0 & 0 & 1.1\end{array}$$ R_it = return for stock i during period t
R_mt = return for the aggregate market during period t
-Refer to Exhibit 6.2. What is the abnormal rate of return for Stock ABC during period t using only the aggregate market return (ignore differential systematic risk) ?

• A)3.2%
• B)2.4%
• C)1.3%
• D)-1.5%
• E)2.0%

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Definitions:

Learned System

A body of knowledge or behaviors acquired through experience or education rather than being instinctual.

Beliefs

Convictions or acceptances that something exists or is true, especially without proof.

Norms

Societal or group-established standards of behavior.

Perceptual Barrier

A cognitive obstacle that prevents individuals from accurately understanding or interpreting information from others.