The capital asset pricing model (CAPM) is the most fundamental model for modern finance. It calculates the relationship between the market return and the return from an individual risky financial asset: Y=Bo+B1X+E, where Y is the financial asset's annual return and X is the annual market return (both measured in percentage). Bo can be interpreted as the risk-free return, B1 is the effect from the marifet condition. The residual & is the excess return over the market condition. Suppose that BO and B1 are estimated to be 2 and 1.2, respectively. In a year, the market return was -10%, but the asset return was -7%. What is the estimated excess return for the asset in the year? O a 5% O b. 4% O C. 1% O d. 2% 8. 3%