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16. You have just run a regression of monthly returns on MAD Inc., a newspaper and magazine publisher, against returns on the S&P 500, and

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16. You have just run a regression of monthly returns on MAD Inc., a newspaper and magazine publisher, against returns on the S&P 500, and arrived at the following result ii RMAD = - 0.05% + 1.20 RSBIP The regression has an Rsquared of 22%. The current T.Bill rate is 5.5% and the current T.Bond rate is 6.5%. The riskfree rate during the period of the regression was 6%.. Answer the following questions relating to the regression ii a. Based upon the intercept, you can conclude that the stock did A. 0.05% worse than expected on a monthly basis, during the regression. B. 0.05% better than expected on a monthly basis during the period of the regression C. 1.25% better than expected on a monthly basis during the period of the regression

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