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You regress the return of a trading strategy on a constant and the return of the market. The intercept and slope estimates are 0.043 and
You regress the return of a trading strategy on a constant and the return of the market. The intercept and slope estimates are 0.043 and 0.098, respectively. If the average return to the market is 6.65%, what would we expect the average return of this trading strategy to be?
a.8.95%
b.4.95%
c. 6.65%
d. 10.01%
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