Question: An analyst estimates a security characteristic line using a single index model and finds the following statistics: Coefficient Std. Error P-value Lower 95% Upper 95%

An analyst estimates a security characteristic line using a single index model and finds the following statistics:

Coefficient Std. Error P-value Lower 95% Upper 95%
Intercept 0.0117 0.0018 0.1111 -0.0151 +0.0227
Rm - Rf 1.016 0.0271 7.691E-07 0.7554 1.558

We know from the results that the estimate of the stocks alpha is ________ and we know with 95% confidence the alpha is _____________________________.

1.016; between 1 and 2 1.17%; significantly different from zero. 1.17%; insignificantly different from zero between 1.17 and 1.016; significantly different from zero

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