Question: Give the following true population SIM (not estimated SIM): When estimating this true SIM, what will be the estimated value of alpha (the intercept), when

Give the following true population SIM (not estimated SIM):

When estimating this true SIM, what will be the estimated value of alpha (the intercept), when the variance of is small? Theriskless rate

is 0% and the market risk premium is 0.5%. Your answer should be in percentage points.

Select one:

a.0

b. near 0.1% but not exactly 0.1%

c. 0.5%

d. 0.1%

e. near 0.5% but not exactly 0.5%

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