Exhibit 15-6

question 67

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 there are abnormal returns,the conclusion to the test is at the 5% significance level is:

• A)Reject H₀,and conclude there are abnormal returns.
• B)Do not reject H₀,and conclude there are abnormal returns.
• C)Reject H₀,and do not conclude there are abnormal returns.
• D)Do not reject H₀,and do not conclude there are abnormal returns.

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Definitions:

ACh Agonists

Chemicals that mimic or enhance the action of acetylcholine, a neurotransmitter involved in muscle activation and memory.

Peripheral Nervous System

The part of the nervous system outside the brain and spinal cord, responsible for connecting the central nervous system to limbs and organs.

Somatic Nervous System

Part of the peripheral nervous system that is responsible for carrying sensory and motor information to and from the central nervous system.

Movement

The act or process of moving; a change of place or position, often referring to physical activity or migration.