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

question 10

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 B when you consider its systematic risk measure (beta) ?

• A)0.1%
• B)-1.4%
• C)0.5%
• D)1.5%
• E)2.0%

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Definitions:

Neural Connections

The links between neurons (nerve cells) in the brain and nervous system that facilitate the transmission of signals and the processing of information.

Infant Brains

The developing neurological structures and cognitive functions in babies.

Brain Adaptability

The capacity of the brain to modify its structure and function in response to changes in the environment, learning, or damage, also known as neuroplasticity.

Double-Edged Sword

A situation or decision that has both positive and negative consequences or effects.