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 $\beta$ is 0.5.The risk-free rate of return is 12%.The true $\beta$ 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 $\beta$ is 0.5.The risk-free rate of return is 12%.The true $\beta$ of the stock is
A)0%.
B)3%.
C)6%.
D)9%.

An Analyst Estimates the Index Model for a Stock Using β\betaβ

An Analyst Estimates the Index Model for a Stock Using $\beta$