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Exhibit 64
Use the Information Below for the Following Problem(S)

question 80

Multiple Choice

Exhibit 6.4
Use the Information Below for the Following Problem(S)
 stack  Fit R mit  a  Eeta  A 10.31200.63949001.2\begin{array} { c c c c c } \text { stack } & \text { Fit } & R \text { mit } & \text { a } _ { \text {i } } & \text { Eeta } \\\hline \text { A } & 10.3 & 12 & 0 & 0.6 \\3 & 94 & 90 & 0 & 1 .2\end{array}
R?t = return for stock i during period t
Rmt = return for the aggregate market during period t
-Refer to Exhibit 6.4.What is the abnormal rate of return for Stock B when you consider its systematic risk measure (beta) ?

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Definitions:

1930s

A decade during which the world experienced the Great Depression, characterized by significant economic hardship, high unemployment, and major shifts in economic policies.

Quantity Controls

Government-imposed limits on the amount of a good that can be produced or sold within a market.

Price Ceilings

A legally established maximum price for goods or services, aimed at preventing prices from rising too high.

Price Floors

Minimum legal prices set by the government for certain goods and services, intended to ensure that prices do not fall below a certain level.

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