The market model is a famous finance model:

Ri= a + b Rm+ ei

Where Riis the return on asset i,a and b are coefficients, Rmis the return on the market andeiis an error term.

This model was estimated using regression analysis for Biovl. The data is monthly and the period from January 1987 to January 2004. The results are below (thetstatistics are in parentheses below the estimated coefficients):

Ri= 0.05 + 1.90 Rm

(2.13)(1.98)

What is the intercept of this regression?

What is the slope of this regression?

If the appropriate criticaltvalues are 1.96, are the intercept and slopes statistically significant?