Exhibit 63
Use the Information Below for the Following Problem(S)

question 26

Multiple Choice

Exhibit 6.3
Use the Information Below for the Following Problem(S)
$$\begin{array} { l l c c c } \text { Stack } & \mathrm { R } _ { \mathrm { it } } & \mathrm { R } _ { \text {mt } } & \mathrm { a } _ { \mathbf { i } } & \text { Beta } \\\hline \text { Elliat } & 9.9 & 15.0 & 0 & 0.8 \\\text { Hemlick } & 9.1 & 0.0 & 0 & 1 .1\end{array}$$
R?t = return for stock i during period t
Rmt = return for the aggregate market during period t
-Refer to Exhibit 6.3.What is the abnormal rate of return for Hemlick when you consider its systematic risk measure (beta) ?

• A) 0.1%
• B) 0.3%
• C) 0.5%
• D) 1.5%
• E) 3.0%

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Definitions:

M1

A category of the money supply that includes physical currency and coin, demand deposits, traveler's checks, and other checkable deposits.

Savings Deposits

accounts held at financial institutions that allow deposits and withdrawals and are subject to modest interest rates.

Commodity Money

Money that has intrinsic value and can be used for purposes other than as a medium of exchange, such as gold or silver.

Legal Tender

The government-mandated currency that must be accepted as payment for debts.