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:

Hydrogen Atom

The simplest type of atom, consisting of one proton in the nucleus and one electron bound to the nucleus.

Transition State

A high-energy state during a chemical reaction, where reactants are transformed into products.

Acid-Base Reaction

A chemical reaction that involves the transfer of a hydrogen ion (H+) from an acid to a base.

Carbene

A reactive molecule containing a carbon atom with two unshared electrons and bonded to two other atoms.