Question: A sell-side analyst, Jozef estimates the index model for a stock using regression analysis Involving total returns. Based on his forecast, estimated intercept in the

A sell-side analyst, Jozef estimates the index model for a stock using regression analysis Involving total returns. Based on his forecast, estimated intercept in the regression equation is 6% and the is 0.5. The ASX 200 is trading at 5000, increasing by 2% compared to last year. The T-bill is 12%. The true alpha of the stock is

Select one:

a.2%

b.0%

c.6%

d.3%

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