USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 129

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 5.2. What is the abnormal rate of return for Stock ABC when you consider its systematic risk measure (beta) ?

• A) 2.4 percent
• B) 1.5 percent
• C) -1.5 percent
• D) 2.0 percent
• E) -3.2 percent