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What Is the Most Logical Explanation for a +2

question 96

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What is the most logical explanation for a +2.0% return on a stock with a beta of 1.0 in a month where the market returned +1.0%?


Definitions:

Paid-in Capital

The amount of money that shareholders have invested in a company in exchange for ownership, excluding earnings or retained profits.

Retained Earnings Appropriation

Portions of retained earnings that are set aside for specific purposes, such as future expansion or debt repayment, indicating they are not available for dividend distribution.

Board of Directors

A group of individuals elected by shareholders to oversee the management and make major decisions for a corporation.

Prior Period Adjustment

Correction made in the current year of a mistake made in previous years. The adjustment is updated on the statement of retained earnings.

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