Exhibit 61
Use the Information Below for the Following Problem(S)

question 71

Multiple Choice

Exhibit 6.1
Use the Information Below for the Following Problem(S)
$\begin{array}{ccccc}\text { Stock } & \mathbf{R}_{\text {it }} & \mathbf{R}_{\text {mt }} & \mathbf{a}_{\mathbf{i}} & \text { Beta } \\\hline \mathrm{C} & 12 & 10 & 0 & 0.8 \\\mathrm{~F} & 10 & 80 & 0 & 1.1\end{array}$
R_it = return for stock i during period t
R_mt = return for the aggregate market during period t
-Refer to Exhibit 6.1.What is the abnormal rate of return for Stock E during period t using only the aggregate market return (ignore differential systematic risk) ?

• A) 4.0%
• B) 2.0%
• C) 1.2%
• D) -1.05%
• E) -8.5%

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Definitions:

Specificity Theory

A theory suggesting that specific receptors in the body are responsible for specific sensations like pain.

Sensory Qualities

Sensory Qualities pertain to characteristics of objects or experiences as perceived by the senses, including taste, smell, touch, sight, and hearing.

Neurons

Nerve cells that are the basic building blocks of the nervous system, responsible for receiving sensory input from the external world, processing and transmitting information through electrical and chemical signals.

Signal Detection

Signal detection is a technique used to identify the presence of a stimulus or signal in the midst of noise, emphasizing the ability to differentiate between information-bearing patterns and random patterns.