USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 89

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

• A) 3.40
• B) 4.40
• C) -1.86
• D) -4.40
• E) -1.70

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Definitions:

Posterior Communicating Arteries

Arteries that connect the posterior cerebral arteries with the internal carotid arteries and are part of the circle of Willis in the brain.

Anterior Cerebral Arteries

Arteries supplying blood to most of the medial portions of the frontal lobes and superior medial parietal lobes of the brain.

Pulmonary Trunk

The major blood vessel that carries blood from the right ventricle of the heart to the lungs for oxygenation.

Pulmonary Veins

Blood vessels that carry oxygenated blood from the lungs to the left atrium of the heart.