Exhibit 15-6

question 88

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 relevant critical value at the 5% significance level is .The conclusion to the test is:

• A)Reject H₀,and conclude that the return on Tiffany stock is riskier than the return on the market.
• B)Do not reject H₀,and conclude that the return on Tiffany stock is riskier than the return on the market.
• C)Reject H₀,and conclude that the return on Tiffany stock is less risky than the return on the market.
• D)Do not reject H₀,and conclude that the return on Tiffany stock is less risky than the return on the market.

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Definitions:

Government Programs

Initiatives and projects undertaken by the government aimed at improving the welfare of its citizens, often in areas like health, education, and social security.

Substance Abuse Policy

Organizational rules and guidelines designed to manage the use and consequences of drugs and alcohol abuse within the workplace.

National Level

A scale of analysis or operation that pertains to an entire country as opposed to local or regional levels.

Self-Sabotage

Engaging in behaviors or thought patterns that hinder one's own success or well-being.