Exhibit 15-6

question 11

Multiple Choice

Exhibit 15-6.Tiffany & Co.has been the world's premier jeweler since 1837.The performance of Tiffany's stock is likely to be strongly influenced by the economy.Monthly data for Tiffany's risk-adjusted return and the risk-adjusted market return are collected for a five-year period (n = 60) .The accompanying table shows the regression results when estimating the CAPM model for Tiffany's return. Refer to Exhibit 15-6.When testing whether the beta coefficient is significantly greater than one,the value of the test statistic is

• A)-98.
• B)1.98.
• C)4.33.
• D)9.58.

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Definitions:

Cash Flows

The inflow and outflow of cash and cash equivalents, indicating a company's financial health and liquidity.

Capital Expenditure

Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment.

Net Present Value

The disparity between the current value of cash coming in and the current value of cash going out over a specific duration.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs from its total revenue.