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

---

Definitions:

Formalisation

The process of establishing official structures, procedures, and rules within an organization to ensure efficiency, clarity, and compliance.

Vroom-Jago Leader-Participation Model

A decision-making framework that helps leaders decide how much participation they should allow from subordinates in the decision-making process.

Group Decision

A decision-making process where choices or judgments are made collectively by a group rather than by an individual.

Hersey and Blanchard

Creators of the situational leadership model, which proposes that effective leadership varies with the task at hand and involves adjusting behaviors.