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Exhibit 6.6
Use the Information Below for the Following Problem(S)
R?t = return for stock i during period t
Rmt = return for the aggregate market during period t
-Refer to Exhibit 6.6.What is the abnormal rate of return for Stock A during period t using only the aggregate market return (ignore differential systematic risk) ?
Deep Basin
A large depression on the earth's surface, often below sea level, characterized by significant depths and possibly housing sedimentary formations or resources.
Mid-ocean Ridge
A mid-ocean ridge is an underwater mountain system formed by plate tectonics, characterized by a rift at the crest through which magma rises, creating new oceanic crust.
Back-arc Spreading
A geologic process occurring behind a subduction zone, where new oceanic crust is formed by the spreading and melting of the mantle.
Plate-tectonic Setting
The geological and geographical context of an area in relation to the movement and interaction of tectonic plates.
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