You have run a regression of weekly returns for ACME Inc., a publicly traded chemical company, against the S&P 500 and obtained the following:

• ReturnsACME = 0.23%% + 2.25*ReturnsS&P 500
• R2 = 45%
• The average annual risk free rate during the period 5.2%.

On a market-adjusted, risk-adjusted basis, how well did ACME do during this time period?

a.

20.23%

b.

7.21%

c.

2.36%

d.

16.14%