Based on Stock Z's Beta of 0

question 20

Multiple Choice

Based on Stock Z's beta of 0.9 the normal return is 9 percent. However, the actual return for Stock Z was 8 percent. What is Stock Z's abnormal rate of return?

• A) -1.0 percent
• B) -0.1 percent
• C) 0.1 percent
• D) 1.0 percent
• E) 1.1 percent

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Definitions:

Energy Use

The consumption of energy resources by households, industries, and other sectors of an economy.

More Pollution

An increase in contaminants or harmful substances in the environment, leading to degraded air, water, or soil quality.

Wood Pulp

A material derived from trees that is the primary ingredient in paper production, obtained through mechanical or chemical processing.

Hydrogen Peroxide

A chemical compound (H2O2) used as a bleach, antiseptic, and oxidizer.