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Looking for help in solving the below question + bonus question. Many Thanks! Quack Box is an investment research that provides data and research insights

Looking for help in solving the below question + bonus question. Many Thanks!

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Quack Box is an investment research that provides data and research insights on a wide range of investment offerings, including managed investment products, publicly listed companies, private capital markets, and real-time global market data. Quack Box gives each fund a star rating of between 1 and 5 stars based on its perfor- mance in the last three years. Its methodology ensures that 20% of rated funds receive each of the possible ratings - 1, 2, 3, 4, and 5 at any point in time. For a large set of funds, you pull data on the Quack Box star rating of the fund as of Dec 31, 2013, and compare it with the star rating for the period Jan 1, 2014 to Dec 31, 2016. (For simplicity, assume that none of the funds closed or otherwise ceased to exist during this period.) You fit a linear model to predict the star rating of a fund for the next three years based on its star rating of the fund for the past three years. The best fit linear regression model has a slope of 0.10, which is statistically significant. Which of the following is true? (Select all correct answers.) (a) The intercept of the linear model will be less than 1. (b) A fund with a higher star rating performs better on average over the next three years than a fund with a lower star rating- (c) The future star rating of funds is largely unpredictable; past performance is a very weak indicator of future performance. (d) A shrinkage estimator would be an appropriate alternative to a linear regression for this problem. Bonus Question: How large will the intercept of the linear model be

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