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:

Police Job

Occupation involving enforcement of laws, maintenance of public order, and protection of life and property.

Expected Frequency

In statistics, the predicted count of occurrences across different categories or intervals in a sample.

Expected Frequency

The number of times an outcome is expected to occur in a statistical experiment based on the probability of that outcome.

Police Job

Employment in law enforcement, responsible for maintaining public order and safety.