Question: Chris Sims is a statistician working for SimTech Fund in Aspen. He just ran a Single Index Model for ONOCO stock. In his regression, Chris

Chris Sims is a statistician working for SimTech Fund in Aspen. He just ran a Single Index Model for ONOCO stock. In his regression, Chris estimated that the intercept term is 2%, the slope is 0.5. Using this estimates, Chris observes that when the market expected return is 25% and the risk free rate is 5% then ONOCO's actual excess return is 15%. Please mark the only CORRECT answer.

	a.	ONOCO delivered bad "firm specific" news amounting to -3.0%
	b.	ONOCO delivered positive "firm specific" news amounting to +3.0%
	c.	ONOCO delivered amazing "firm specific" news amounting to +12.0%
	d.	ONOCO delivered excelent "firm specific" news amounting to +5.0%

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