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

question 78

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 during period t using only the aggregate market return (ignore differential systematic risk) ?

• A)1.50
• B)1.10
• C)-1.50
• D)-5.10
• E)-8.00

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Definitions:

Wholly Owned Subsidiary

A company whose entire share capital is held by another company.

Uniform Accounting Practices

Standardized accounting procedures and practices that ensure consistency and comparability across companies and industries.

Uniform Accounting Policies

Accounting standards and policies that are consistently applied across different entities within a group, ensuring comparability and transparency of financial statements.

Investee

An entity in which an investor holds a minority stake, without controlling interest.