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

question 3

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 when you consider its systematic risk measure (beta) ?

• A) 1.40%
• B) -1.40%
• C) 2.80%
• D) -2.80%
• E) None of the above

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Definitions:

Presence

The state or fact of existing, occurring, or being present in a place or thing.

Absence

The state of being away or not present in a given situation or location.

Crisis

A critical or tumultuous situation that requires immediate and decisive action to prevent or mitigate disaster or distress.

Psychology

The scientific study of the mind and behavior, examining an individual's thoughts, emotions, and actions.