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:

Nature of People

The nature of people encompasses the fundamental qualities, behaviors, and characteristics inherent in human beings, often debated in terms of the balance between innate traits and social conditioning.

Redistribution of Income

Economic policies or practices designed to adjust the distribution of wealth by transferring income from certain groups to others, often to reduce inequality.

National Government

Refers to the political authority that governs an entire nation, as opposed to state or local governments.

Traditional Values

Fundamental beliefs and moral principles that are passed down through generations, often associated with cultural, religious, or community norms.