Exhibit 65
Use the Information Below for the Following Problem(S)

question 47

Multiple Choice

Exhibit 6.5
Use the Information Below for the Following Problem(S)
$\begin{array}{ccccc}\text { Stock } & \mathbf{R}_{\mathbf{i t}} & \mathbf{R}_{\text {mt }} & \mathbf{a}_{\mathbf{i}} & \mathbf{B e t a} \\\hline \mathrm{A} & 10.6 & 15 & 0 & 0.8 \\7 & 9.8 & 8 .0 & n & 1.1\end{array}$
R?t = return for stock i during period t
Rmt = return for the aggregate market during period t
-Refer to Exhibit 6.5.What is the abnormal rate of return for Stock A during period t using only the aggregate market return (ignore differential systematic risk) ?

• A) 3.40
• B) 4.40
• C) -1.86
• D) -4.40
• E) -1.70

---

Definitions:

Equation

An equation is a mathematical statement that asserts the equality of two expressions, typically including one or more variables.

Decimal Places

The number of digits to the right of the decimal point in a number, indicating the precision or fraction part.

Percent

A part per hundred ratio, a way of expressing a number as a fraction of 100.

Decimal

A number representing a fraction or a whole number using a point to separate the whole part from the fractional part.