Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

An analyst estimates the index model for a stock using regression analysis involving total returns, not the excess return. The estimated intercept in the regression

An analyst estimates the index model for a stock using regression analysis involving total returns, not the excess return. The estimated intercept in the regression equation is 6% and the is 0.5. The risk-free rate of return is 12%. The true of the stock is
A.0%
B.3%
C.6%
D.9%
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Financial Management

Authors: Brigham, Daves

10th Edition

978-1439051764, 1111783659, 9780324594690, 1439051763, 9781111783655, 324594690, 978-1111021573

More Books

Students also viewed these Finance questions