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

question 10

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 when you consider its systematic risk measure (beta) ?

• A) 0.1%
• B) 1.0%
• C) 0.5%
• D) -1.0%
• E) -2.0%

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Definitions:

Freed Slaves

Individuals who were emancipated from slavery, either through legal means, such as the abolition of slavery, or through escape.

Federal Government

The national government of a federation which has specific responsibilities defined by a constitution, distinct from regional or state governments within the federation.

Confederate Congressional Elections

Elections held within the Confederate States of America during the Civil War to elect representatives to their Congress, reflecting the political dynamics and nationalism of the Confederacy.

Public Confidence

refers to the trust and belief the general public has in the ability of an organization, institution, or government to perform its duties effectively and ethically.