Question: 5. You are using regression analysis to estimate the equity beta for an electric utility. Suppose the risk-free rate of return is zero, and you

5. You are using regression analysis to estimate the equity beta for an electric utility. Suppose the risk-free rate of return is zero, and you run the CAPM regression, obtaining a constant term equal to 0.5 and a slope parameter equal to 0.8. Have you implemented the CAPM regression correctly? Explain why or why not.

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