Exhibit 62
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 21

Multiple Choice

Exhibit 6.2
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) $$\begin{array} { c c c c c } \text { Stock } & \mathbf { R } _ { \text {it } } & \mathbf { R } _ { \text {mt } } & \mathbf { a } _ { \mathbf { i } } & \text { Beta } \\\hline \mathrm { ABC } & 11.5 & 13.0 & 0 & 0.7 \\\mathrm { XYZ } & 9.0 & 7.0 & 0 & 1.1\end{array}$$ R_it = return for stock i during period t
R_mt = return for the aggregate market during period t
-Refer to Exhibit 6.2. What is the abnormal rate of return for Stock ABC during period t using only the aggregate market return (ignore differential systematic risk) ?

• A)3.2%
• B)2.4%
• C)1.3%
• D)-1.5%
• E)2.0%

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