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:

Capital Balance

The amount of money that stakeholders have invested in a company minus any distributions to those stakeholders.

Capital Account

An account showing the net changes in a nation's financial assets and liabilities as part of its balance of payments.

Statement Of Partners' Equity

A financial document that outlines the changes in the equity accounts of partners throughout the accounting period, including additions due to investments and profits, and deductions due to withdrawals and losses.

Partnership

An approved manner of conducting business that involves multiple people sharing control and profits.