Exhibit 62
Use the Information Below for the Following Problem(S)

question 11

Multiple Choice

Exhibit 6.2
Use the Information Below for the Following Problem(S)
$$\begin{array} { c c c c c } \text { Stack } & \mathrm { R } _ { \mathbf { i t } } & \mathbf { R } _ { \text {mt } } & \mathbf { a } _ { \mathbf { i } } & \text { Beta } \\\hline \text { ABC } & 11.5 & 13.0 & 0 & 0.7 \\\text { XYZ } & 90 & 70 & 0 & 1 .1\end{array}$$
R_it= return for stock i during period t
R_mt = return for the aggregate market during period t
-Refer to Exhibit 6.2.What is the abnormal rate of return for Stock ABC when you consider its systematic risk measure (beta) ?

• A) 2.4%
• B) 1.5%
• C) -1.5%
• D) 2.0%
• E) -3.2%

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Definitions:

Embezzlement

Misappropriation or theft of funds placed in one's trust or belonging to one's employer.

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Regulations set by local governments regarding the design, construction, and occupancy of buildings to ensure public safety and health.

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A minor crime that is punishable by a small fine and/or imprisonment for less than six months in a jail.

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A criminal act involving the use of postal services or electronic mail to carry out fraudulent schemes with the intent to deceive for personal gain.