Based on Stock Z's Beta of 0

question 68

Multiple Choice

Based on Stock Z's beta of 0.9 the normal return is 9%. However, the actual return for Stock Z was 8%. What is Stock Z's abnormal rate of return?

• A)-1.0%
• B)-0.1%
• C)0.1%
• D)1.0%
• E)1.1%

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Definitions:

Interviews

A qualitative research method involving direct, face-to-face, or virtual conversation between the interviewer and interviewee(s) to gather in-depth data on a subject.

Incomplete Observer

A research role where the observer does not fully participate or reveal their observer status to the subjects being studied.

Relationships

The ways in which two or more concepts, objects, or people are connected, or the state of being connected.

Qualitative Method

Research methods that collect non-numerical data used to understand concepts, thoughts, or experiences.