Suppose you have 5-year annual data on the excess returns on a fund manager's portfolio ("fund ABC") and the excess returns on a market index (where is the return on fund ABC, is the risk-free rate and is the return on the market index):

What is the estimated alpha () for Fund ABC?

(a) 2.3

(b)* 3.3

(c) 4.3

(d) 5.3

Year to Excess return on fund ABC Excess return on market index ABC,1 - VA 14.0