USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
R it = return for stock i during period t
R mt = return for the aggregate market during period t
-Refer to Exhibit 5.3. What is the abnormal rate of return for Hemlick when you consider its systematic risk measure (beta)?
A) 0.1 percent
B) 0.3 percent
C) 0.5 percent
D) 1.5 percent
E) 3.0 percent

Question

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
  R it = return for stock i during period t
R mt = return for the aggregate market during period t
-Refer to Exhibit 5.3. What is the abnormal rate of return for Hemlick when you consider its systematic risk measure (beta)?
A) 0.1 percent 
B) 0.3 percent 
C) 0.5 percent 
D) 1.5 percent 
E) 3.0 percent

Quizplus · Accepted Answer

The Answer of USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
  R it = return for stock i during period t
R mt = return for the aggregate market during period t
-Refer to Exhibit 5.3. What is the abnormal rate of return for Hemlick when you consider its systematic risk measure (beta)?
A) 0.1 percent 
B) 0.3 percent 
C) 0.5 percent 
D) 1.5 percent 
E) 3.0 percent