Exhibit 61
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 4

Multiple Choice

Exhibit 6.1
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) $$\begin{array} { c c c c c } \text { Stock } & \mathbf { R } _ { \text {it } } & \mathbf { R } _ { \text {mt } } & \mathbf { a } _ { \mathbf { i } } & \text { Beta } \\\hline \mathrm { C } & 12 & 10 & 0 & 0.8 \\\mathrm { E } & 10 & 8.0 & 0 & 1.1\end{array}$$ R_it = return for stock i during period t
R_mt = return for the aggregate market during period t
-Refer to Exhibit 6.1. What is the abnormal rate of return for Stock E when you consider its systematic risk measure (beta) ?

• A)2.0%
• B)1.2%
• C)4.0%
• D)-1.05%
• E)-8.5%

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Definitions:

Schein and Bennis

Two influential thinkers in the field of organizational behavior and leadership studies.

Organizational Levels

The different layers within an organization that typically include top-level management, middle management, and lower-level or operational employees.

Coaches

Professionals who support and guide individuals or teams to achieve specific personal or professional goals.

Internal Dimensions

Aspects of an organization or individual that are intrinsic and internal, affecting its operations, behaviors, and structures from within.