Exhibit 64
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 34

Multiple Choice

Exhibit 6.4
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) $$\begin{array} { c c c c c } \text { Stock } & \mathbf { R } _ { \text {it } } & \mathbf { R } _ { \text {mt } } & \mathbf { a } _ { \mathbf { i } } & \text { Beta } \\\hline \mathrm { A } & 10.3 & 12 & 0 & 0.6 \\\mathrm {~B} & 9.4 & 9.0 & 0 & 1.2\end{array}$$ R_it = return for stock i during period t
R_mt = return for the aggregate market during period t
-Refer to Exhibit 6.4. What is the abnormal rate of return for Stock A during period t using only the aggregate market return (ignore differential systematic risk) ?

• A)3.34
• B)1.75
• C)-1.75
• D)-3.70
• E)-1.70

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Definitions:

Main Connective

The primary logical operator in a compound statement or proposition that determines the overall truth value of the statement based on its components.

Symbolic Notation

The use of symbols or abbreviations to represent specific objects, operations, or quantities in various fields, including mathematics, physics, and chemistry.

Atomic Components

The simplest parts or elements of something that cannot be divided further without losing its essential properties.

Atomic Statements

Simple statements that cannot be broken down into smaller parts, each representing a single fact or proposition.