The market model Rit = it + iRmt + it for i = 1,...,N assets and t = 1,...,T month is used in event study analysis to test for the effect of public announcements on stock returns. Assume that E[itjs] = 0 for i = j and t,s = 1,...,T, and that (1t,...,Nt)T has a multivariate normally distribution with elements that have finite mean and positive variance. Given that the market model here involves N > 1 stocks, how can the N coefficients i and i of this model be estimated consistently. (a) Ordinary least squares will produce consistent estimates of the coefficients; (b) The maximum likelihood estimates of the coefficients will be algebraically equiva- lent to the ordinary least squares estimates; (c) Generalized Least Squares will produce consistent estimates of the coefficients; (d) All of (a) to (c) are correct; (e) None of (a) to (c) are correct