Question: Consider the two (excess return) index model regression results for A and B : R A = 1% + 1.2 R M R -square =

Consider the two (excess return) index model regression results for A and B: RA = 1% + 1.2RM R-square = 0.576 Residual standard deviation = 10.3%

RB = 2% + 0.8RM R-square = 0.436

If rf were constant at 6% and the regression had been run using total rather than excess returns, what would have been the regression intercept for stock A? (Negative value should be indicated by a minus sign. Round your answer to 1 decimal place.)

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