Question: 22) An analyst estimates the index model for a stock using regression analysis involving total returns. The estimated excess return in the regression equation is

22) An analyst estimates the index model for a stock using

22) An analyst estimates the index model for a stock using regression analysis involving total returns. The estimated excess return in the regression equation is 6% and the is 0.5 . The excess return on the market is 12%. The stock's alpha is A) 0%. B) 3%. C) 6%. D) 9%

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