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:

TMX Group

A Canadian financial services company that operates multiple securities exchanges, including the Toronto Stock Exchange (TSX) and TSX Venture Exchange.

Toronto Stock Exchange

A major stock exchange in Canada, where shares of companies are bought and sold.

TSX Venture Exchange

A Canadian stock exchange for small and emerging companies, focusing on microcap and emerging markets.

S&P/TSX 60 Index

A stock market index of 60 large companies listed on the Toronto Stock Exchange, representing leading sectors in Canada.