USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 13

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
R_it = return for stock i during period t
R_mt = return for the aggregate market during period t
-Refer to Exhibit 5.1. What is the abnormal rate of return for Stock C when you consider its systematic risk measure (beta) ?

• A) 4.0 percent
• B) 1.2 percent
• C) 2.0 percent
• D) -1.05 percent
• E) -8.5 percent

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