Exhibit 63
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 84

Multiple Choice

Exhibit 6.3
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) $$\begin{array} { l l r l c } \text { Stock } & \mathbf { R } _ { \text {it } } & \mathbf { R } _ { \text {mt } } & \mathbf { a } _ { \mathbf { i } } & \text { Beta } \\\hline \text { Elliot } & 9.9 & 15.0 & 0 & 0.8 \\\text { Hemlick } & 9.1 & 8.0 & 0 & 1.1\end{array}$$ R_it = return for stock i during period t
R_mt = return for the aggregate market during period t
-Refer to Exhibit 6.3. What is the abnormal rate of return for Hemlick during period t using only the aggregate market return (ignore differential systematic risk) ?

• A)0.11
• B)1.10
• C)-1.80
• D)1.80
• E)-4.60

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Definitions:

Verbal Tool

Language used as a means to communicate, express ideas, or convey messages effectively.

Lev Vygotsky

A Russian psychologist known for his work on cognitive development, emphasizing the role of social interaction and cultural tools in learning.

Concrete Operational

A stage in Piaget's theory of cognitive development during which children gain the ability to think logically about concrete events.

Counted

The act of determining the total number of items or individuals in a set or group.