Exhibit 62
Use the Information Below for the Following Problem(S)

Exhibit 6.2
Use the Information Below for the Following Problem(S)
$$\begin{array} { c c c c c } \text { Stack } & \mathrm { R } _ { \mathbf { i t } } & \mathbf { R } _ { \text {mt } } & \mathbf { a } _ { \mathbf { i } } & \text { Beta } \\\hline \text { ABC } & 11.5 & 13.0 & 0 & 0.7 \\\text { XYZ } & 90 & 70 & 0 & 1 .1\end{array}$$
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 ABC during period t using only the aggregate market return (ignore differential systematic risk) ?

A) 3.2%
B) 2.4%
C) 1.3%
D) -1.5%
E) 2.0%

Correct Answer:

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