In a regression of the monthly excess returns on XYZ with the monthly excess return on the SPY ETF you found that the intercept is .5% and the slope is 1.5. Based on this relationship, in months when, on average, the excess return on the market is 1% higher than expected, the average excess return on XYZ will be best estimated to be____?

A)2% higher than expected b)1.5 higher than expected C).25% higher than expected D) as expected