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You run an index model regression and study the security characteristic line (scatter plot) of excess SNAP returns against excess market returns. You notice one

You run an index model regression and study the security characteristic line (scatter plot) of excess SNAP returns against excess market returns. You notice one month of data when SNAPs return was predicted by the regression to be 2%, but was actually -0.5% that month. The difference is due to

a. (beta)

b. (alpha)

c. R2 (r-squared)

d. e (error term)

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