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

question 58

Multiple Choice

Exhibit 6.4
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)  Stock Rit Rmt ai Beta A10.31200.6 B9.49.001.2\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} Rit = return for stock i during period t
Rmt = return for the aggregate market during period t
-Refer to Exhibit 6.4. What is the abnormal rate of return for Stock B during period t using only the aggregate market return (ignore differential systematic risk) ?

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Definitions:

Affiliation

The connection or association between individuals or organizations based on shared interests or goals.

Socialized Power

A form of power that is utilized for the benefit of a group or society as a whole, rather than for individual gain.

Personalized Power

Power wielded for personal gain or satisfaction rather than for the benefit of others or the organization, characterized by self-centered behavior and manipulation.

E-to-P Expectancy

The belief that exerting a certain amount of effort will lead to a specific level of performance.

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