An analyst estimates the index model for a stock using regression analysis involving total returns.The estimated the intercept in the regression equation is 6% and the β is 0.5.The risk-free rate of return is 12%.The true β of the stock is ________.
A) 0%
B) 3%
C) 6%
D) 9%
E) none of the above
Correct Answer:
Verified
Q42: One "cost" of the single-index model is
Q50: The index model has been estimated for
Q54: The Security Characteristic Line (SCL)
A)plots the excess
Q54: If a firm's beta was calculated as
Q55: The index model has been estimated for
Q57: The expected impact of unanticipated macroeconomic events
Q59: Suppose the following equation best describes the
Q61: Assume that stock market returns do not
Q62: Assume that stock market returns do not
Q63: The index model for stock A has
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents