Tiffany & Co

question 95

Multiple Choice

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. When testing whether there are abnormal returns,or whether the alpha coefficient is significantly different from zero,the value of the test statistic is ____.

• A) −1.98
• B) 1.98
• C) 4.33
• D) 9.58

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Definitions:

Predation

An interaction between two species where one organism (the predator) hunts and eats another organism (the prey).

Density Dependent

Elements that influence the population's size or its growth differently depending on the population density.

Density Independent

Factors affecting the size of populations regardless of the population density, such as weather and climate.

Unpredictable Ways

Patterns or outcomes that are not able to be foreseen or predicted due to a wide array of influencing factors.