Exhibit 63
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 40

Multiple Choice

Exhibit 6.3
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) $$\begin{array} { l l r l c } \text { Stock } & \mathbf { R } _ { \text {it } } & \mathbf { R } _ { \text {mt } } & \mathbf { a } _ { \mathbf { i } } & \text { Beta } \\\hline \text { Elliot } & 9.9 & 15.0 & 0 & 0.8 \\\text { Hemlick } & 9.1 & 8.0 & 0 & 1.1\end{array}$$ R_it = return for stock i during period t
R_mt = return for the aggregate market during period t
-Refer to Exhibit 6.3. What is the abnormal rate of return for Elliot when you consider its systematic risk measure (beta) ?

• A)-2.10%
• B)-2.00%
• C)5.20%
• D)14.10%
• E)None of the above

---

Definitions:

Conflicting Cognitions

Refers to the situation when an individual holds two or more contradictory beliefs, ideas, or values, often leading to discomfort and the drive to reduce inconsistency.

Cohesion Levels

Describes the strength of bonds and unity among members within a group, affecting its functionality, performance, and sustainability.

Performance

The manner in which an individual or group executes a task or displays behavior.

Tentative Communication

Communication that is not assertive, often characterized by hesitancy and lack of confidence in the message being conveyed.