Tiffany & Co

question 108

Multiple Choice

Tiffany & Co. has been the world's premier jeweler since 1837. The performance of Tiffany's stock is likely to be strongly influenced by the economy. Monthly data for Tiffany's risk-adjusted return and the risk-adjusted market return are collected for a five-year period . The accompanying table shows the regression results when estimating the Capital Asset Pricing Model (CAPM) model for Tiffany's return. When testing whether there are abnormal returns, the conclusion to the test is at the 5% significance level is to ________.

• A) reject H₀; we can conclude there are abnormal returns
• B) not reject H₀; we can conclude there are abnormal returns
• C) reject H₀; we cannot conclude there are abnormal returns
• D) not reject H₀, we cannot conclude there are abnormal returns

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Definitions:

Regular Basis

A consistent or recurring schedule or frequency at which a task or operation is carried out.

Aided Recall

A measure of advertising effectiveness where respondents are given some cues or hints to help them remember if they have seen an advertisement before.

Brand Awareness

The degree to which customers recognize and understand the characteristics or reputation of a specific brand's products or services.