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

question 37

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Exhibit 5-5
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)  Stock Rit Rmt ai Beta A10.61500.8Z9.88.001.1\begin{array}{ccccc}\text { Stock } & \mathrm{R}_{\text {it }} & \mathrm{R}_{\text {mt }} & \mathrm{a}_{\mathrm{i}} & \text { Beta } \\\hline \mathrm{A} & 10.6 & 15 & 0 & 0.8 \\\mathrm{Z} & 9.8 & 8.0 & 0 & 1.1\end{array}
Rit = return for stock i during period t
Rmt = 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) ?


Definitions:

Pivot Centerline

The central axis around which a mechanism or system pivots or rotates.

Angle Iron Brackets

Metal brackets made of angle iron, a piece of iron or steel formed with a 90-degree bend, used to support or strengthen structures.

5th Wheel

A coupling device used primarily in semi-trucks to attach a trailer, characterized by a large pivoting plate.

Upper Coupler Assembly

The component at the front of a semi-trailer that hooks onto the hitch of a truck tractor, providing a connection point.

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