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

question 39

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

• A) 1.50
• B) 1.10
• C) -1.50
• D) -5.10
• E) -8.00

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Definitions:

Poverty

is a socio-economic condition characterized by a severe lack of essential resources, such as food, water, shelter, and education, leading to diminished well-being and quality of life.

Synectics

A problem-solving method that encourages creative thinking, often by making seemingly unrelated analogies.

Cross Functional Teams

Groups composed of members from different departments or areas of expertise working together toward a common goal.

Unconnected Elements

Components that do not have a direct relationship or link with each other.