An Analyst Estimates the Index Model for a Stock Using $\beta$

Multiple Choice

An analyst estimates the index model for a stock using regression analysis involving total returns.The estimated intercept in the regression equation is 6% and the $\beta$ is 0.5.The risk-free rate of return is 12%.The true $\beta$ of the stock is

A) 0%.
B) 3%.
C) 6%.
D) 9%.