Question: ANSWER COMPLETELY AND CORRECTLY 5. You are using regression analysis to estimate the equity beta for an electric utility. Suppose the risk-free rate of return

ANSWER COMPLETELY AND CORRECTLY

ANSWER COMPLETELY AND CORRECTLY 5. You are using regression analysis to estimate

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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