Multiple Choice
An analyst estimates the index model for a stock using regression analysis involving total returns.The estimated the intercept in the regression equation is 6% and the β is 0.5.The risk-free rate of return is 12%.The true β of the stock is
A) 0%.
B) 3%.
C) 6%.
D) 9%.
Correct Answer:
Verified
Correct Answer:
Verified
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