USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 52

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 Z during period t using only the aggregate market return (ignore differential systematic risk) ?

• A) 1.80
• B) 1.40
• C) -1.80
• D) -4.80
• E) -8.80

---

Definitions:

Rows

In a table or database, a horizontal line of cells that together represent all the information related to a single item or entity.

Column Chart

A graphical representation of data using vertical bars to compare different categories or values across a single axis.

Trendlines

Graphical representations that display the trend or direction of data in charts, often used in statistical or financial analysis.

3D Effect

A visual effect that gives the illusion of depth and three-dimensionality to two-dimensional graphics.