If a Two-Factor Model Used the Growth Rate of the Gross

Multiple Choice

If a two-factor model used the growth rate of the gross domestic product and the level of oil prices as factors, what would the intercept term of the model represent?

A) the rate of growth of returns if the GDP and oil prices increased
B) the rate of growth of returns if the GDP and oil prices decreased
C) the expected return if the GDP and oil prices are zero
D) the rate of growth of expected growth if the GDP and oil prices remained constant