USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 119

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 5.3. What is the abnormal rate of return for Hemlick during period t using only the aggregate market return (ignore differential systematic risk) ?

• A) 0.11
• B) 1.10
• C) -1.80
• D) -1.80.
• E) -4.60

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Definitions:

Learned Helplessness

A psychological condition in which an individual becomes passive and unable to avoid adverse situations or stimuli after repeated exposure to uncontrollable events.

Bipolar Disorder

An emotional health issue distinguished by pronounced swings in mood, ranging from high (mania or hypomania) to low phases (depression).

Depressive Episodes

Periods characterized by a significant and persistently low mood, diminished interest or pleasure in most activities, often accompanied by other symptoms like changes in appetite, sleep disturbances, and feelings of guilt or worthlessness.

Manic Episodes

Periods of abnormally elevated mood and high energy, often characterized by excessive talkativeness, decreased need for sleep, and risky behavior, commonly seen in bipolar disorder.