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

question 17

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

• A) 1.80
• B) 1.40
• C) -1.80
• D) -4.80
• E) -8.80

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Definitions:

Taxpayer Remarry

When a taxpayer remarries, it changes their tax filing status and can affect determinations for deductions, credits, and tax liability.

Single Taxpayer

A filing status for individuals who are not married and do not qualify for other filing statuses, impacting the tax rate and deductions available.

Wages

Compensation received by employees for services performed. Typically, it refers to monetary earnings per hour or per piece of work completed.

Understatement

The act of reporting less income or fewer assets than actually exist, often resulting in a lower tax liability but potentially leading to penalties if deliberate.