An analyst estimates the index model for a stock using regression analysis involving total returns. The estimated 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%.

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The Answer of An analyst estimates the index model for a stock using regression analysis involving total returns. The estimated 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%.

An Analyst Estimates the Index Model for a Stock Using