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

question 29

Multiple Choice

Exhibit 5-5
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S) $\begin{array}{ccccc}\text { Stock } & \mathrm{R}_{\text {it }} & \mathrm{R}_{\text {mt }} & \mathrm{a}_{\mathrm{i}} & \text { Beta } \\\hline \mathrm{A} & 10.6 & 15 & 0 & 0.8 \\\mathrm{Z} & 9.8 & 8.0 & 0 & 1.1\end{array}$
R_it = return for stock i during period t
R_mt = return for the aggregate market during period t
-Refer to Exhibit 5-6. What is the abnormal rate of return for Stock B when you consider its systematic risk measure (beta) ?

• A) -0.8%
• B) -1.2%
• C) 1.3%
• D) 2.4%
• E) 6.6%

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Definitions:

Responsibility

The state or fact of having a duty to deal with something or of having control over someone; the state of being accountable.

Physiological Needs

basic physical requirements for human survival, such as air, water, food, shelter, and sleep, representing the base layer of Maslow's Hierarchy of Needs.

Physical Closeness

The proximity or physical distance between individuals, which can impact communication, collaboration, and interpersonal relationships.

Self-actualization

The realization or fulfillment of one's talents and potentialities, considered as a drive or need present in everyone.