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An Analyst Estimates the Index Model for a Stock Using

Question 52

Multiple Choice

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

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