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

question 33

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 5-5. What is the abnormal rate of return for Stock Z during period t using only the aggregate market return (ignore differential systematic risk) ?

• A) 1.80
• B) 1.40
• C) -1.80
• D) -4.80
• E) -8.80

Recognize the shift from concrete operational thinking to formal operational thinking.

Identify the stages and changes in moral reasoning as described by Kohlberg.

Comprehend the task-based approaches to studying cognitive development in adolescents.

Understand the concept of epistemic development and changes in knowledge reasoning.

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Definitions:

Miles and Snow Adaptive Model

A strategic management theory that categorizes companies into four types (Defenders, Prospectors, Analyzers, Reactors) based on their response to environmental changes and competitive structures.

Market Share

The portion of a market controlled by a particular company, expressed as a percentage of total sales in an industry.

Growth Position

The stage in a company's lifecycle where it experiences significant expansion in its market share, products, or services.

Strategic Leadership

A management practice that involves shaping an organization's future direction by making informed decisions and inspiring others.