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Exhibit 6.3
Use the Information Below for the Following Problem(S)
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 during period t using only the aggregate market return (ignore differential systematic risk) ?
Annually
Occurring once every year, often used to describe financial operations or events that happen yearly.
Interest
The cost of borrowing money, typically expressed as an annual percentage of the loan amount.
Coupon Rate
The annual interest rate paid by bond issuers to its bondholders, usually expressed as a percentage of the bond's face value.
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