Exhibit 6.2
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) $$\begin{array} { c c c c c }
\text { Stock } & \mathbf { R } _ { \text {it } } & \mathbf { R } _ { \text {mt } } & \mathbf { a } _ { \mathbf { i } } & \text { Beta } \
\hline \mathrm { ABC } & 11.5 & 13.0 & 0 & 0.7 \
\mathrm { XYZ } & 9.0 & 7.0 & 0 & 1.1
\end{array}$$ R it = return for stock i during period t
R mt = return for the aggregate market during period t
-Refer to Exhibit 6.2. What is the abnormal rate of return for Stock XYZ when you consider its systematic risk measure (beta)?
A)2.0%
B)-1.5%
C)2.4%
D)1.3%
E)-3.2%

Question

Exhibit 6.2
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) $$\begin{array} { c c c c c } 
\text { Stock } & \mathbf { R } _ { \text {it } } & \mathbf { R } _ { \text {mt } } & \mathbf { a } _ { \mathbf { i } } & \text { Beta } \
\hline \mathrm { ABC } & 11.5 & 13.0 & 0 & 0.7 \
\mathrm { XYZ } & 9.0 & 7.0 & 0 & 1.1
\end{array}$$ R it = return for stock i during period t
R mt = return for the aggregate market during period t
-Refer to Exhibit 6.2. What is the abnormal rate of return for Stock XYZ when you consider its systematic risk measure (beta)?
A)2.0%
B)-1.5%
C)2.4%
D)1.3%
E)-3.2%

Quizplus · Accepted Answer

The Answer of Exhibit 6.2
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) $$\begin{array} { c c c c c } 
\text { Stock } & \mathbf { R } _ { \text {it } } & \mathbf { R } _ { \text {mt } } & \mathbf { a } _ { \mathbf { i } } & \text { Beta } \
\hline \mathrm { ABC } & 11.5 & 13.0 & 0 & 0.7 \
\mathrm { XYZ } & 9.0 & 7.0 & 0 & 1.1
\end{array}$$ R it = return for stock i during period t
R mt = return for the aggregate market during period t
-Refer to Exhibit 6.2. What is the abnormal rate of return for Stock XYZ when you consider its systematic risk measure (beta)?
A)2.0%
B)-1.5%
C)2.4%
D)1.3%
E)-3.2%

Exhibit 62 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

Exhibit 62
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)