Pfizer Inc

question 27

Essay

Pfizer Inc. is the world's largest research-based pharmaceutical company. Monthly data for Pfizer's risk-adjusted return and the risk-adjusted market return are collected for a five-year period (n = 60). The accompanying table shows the regression results when estimating the Capital Asset Pricing Model (CAPM) model for Pfizer's return. a. At the 5% significance level, is the beta coefficient less than one? Show the relevant steps of the appropriate hypothesis test.
B) At the 5% significance level, are there abnormal returns? Show the relevant steps of the appropriate hypothesis test.

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Definitions:

Cognitive Ability

The capacity to perform higher mental processes of reasoning, remembering, understanding, problem-solving, and decision-making.

Self-Efficacy

A person's confidence in their capability to accomplish tasks and realize objectives.

Learning Goal

A specific aim or target of learning, focusing on the acquisition of knowledge or skills.

Organizational-Level Outcomes

Refer to the impacts or results achieved by an organization as a whole, often measured in terms of productivity, profitability, quality, and customer satisfaction.