Exhibit 65
Use the Information Below for the Following Problem(S)

Exhibit 6.5
Use the Information Below for the Following Problem(S)
$\begin{array}{ccccc}\text { Stock } & \mathbf{R}_{\mathbf{i t}} & \mathbf{R}_{\text {mt }} & \mathbf{a}_{\mathbf{i}} & \mathbf{B e t a} \\\hline \mathrm{A} & 10.6 & 15 & 0 & 0.8 \\7 & 9.8 & 8 .0 & n & 1.1\end{array}$
R?t = return for stock i during period t
Rmt = return for the aggregate market during period t
-Refer to Exhibit 6.5.What is the abnormal rate of return for Stock Z during period t using only the aggregate market return (ignore differential systematic risk) ?

A) 1.80
B) 1.40
C) -1.80
D) -4.80
E) -8.80

Correct Answer:

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