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

question 84

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

• A)0.11
• B)1.10
• C)-1.80
• D)1.80
• E)-4.60

---

Definitions:

Diminishing Marginal Utility

The principle that as a person consumes more of a good or service, the satisfaction gained from consuming additional units declines.

Concert Tickets

Tickets sold as a means to gain entry to a live performance of musical artists or bands.

Textbooks

Published materials that provide detailed information on a particular subject, often used as primary teaching tools in educational settings.

Budget Constraint

The limitation on the consumption bundles that a consumer can afford given their income and the prices of goods.