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USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

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USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)     R<sub>it</sub> = return for stock i during period t R<sub>mt</sub> = return for the aggregate market during period t -Refer to Exhibit 5.4. What is the abnormal rate of return for Stock B during period t using only the aggregate market return (ignore differential systematic risk) ? A)  0.40 B)  1.40 C)  -1.10 D)  -4.40 E)  -6.40 Rit = return for stock i during period t
Rmt = return for the aggregate market during period t
-Refer to Exhibit 5.4. What is the abnormal rate of return for Stock B during period t using only the aggregate market return (ignore differential systematic risk) ?


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