Exhibit 62
Use the Information Below for the Following Problem(S)

question 11

Multiple Choice

Exhibit 6.2
Use the Information Below for the Following Problem(S)
$$\begin{array} { c c c c c } \text { Stack } & \mathrm { R } _ { \mathbf { i t } } & \mathbf { R } _ { \text {mt } } & \mathbf { a } _ { \mathbf { i } } & \text { Beta } \\\hline \text { ABC } & 11.5 & 13.0 & 0 & 0.7 \\\text { XYZ } & 90 & 70 & 0 & 1 .1\end{array}$$
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 when you consider its systematic risk measure (beta) ?

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

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Definitions:

Revenue-Enhancing Measure

Strategies or actions implemented by an organization or government to increase income or financial inflows.

Supremacy Clause

The provision in Article VI of the U.S. Constitution that provides that the Constitution, laws, and treaties of the United States are “the supreme Law of the Land.” Under this clause, state and local laws that directly conflict with federal law will be rendered invalid.

Medical Devices

Medical Devices are items or instruments used in the diagnosis, prevention, monitoring, treatment, or alleviation of disease or injury in healthcare practices.

Threating Messages

Written or verbal communications intended to frighten or coerce someone by promising harm or punishment.