Exhibit 5-3
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)

question 35

Multiple Choice

Exhibit 5-3
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S) $$\begin{array} { l c c c c } \text { Stack } & R _ { \text {in } } & R _ { \text {mi } } & a _ { i } & \text { Beta } \\\hline \text { Elliat } & 9.9 & 15.0 & 0 & 0.8 \\\text { Hemlick } & 9.1 & 8.0 & 0 & 1.1\end{array}$$
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 when you consider its systematic risk measure (beta) ?

• A) 0.1%
• B) 0.3%
• C) 0.5%
• D) 1.5%
• E) 3.0%

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Definitions:

Analysis

The process of examining components or structures of a complex issue, item, or data set to understand it better or draw conclusions.

Written Lab Report

A detailed document that presents the methodology, findings, and conclusions of a laboratory experiment.

Credibility

The quality of being trusted and believed in, often based on a reputation for honesty and integrity.

Researcher

an individual who conducts systematic investigation to establish facts, reach new conclusions, or develop new theories.