Question: market's average return was 14%. Performance is measured using an index model regression on excess returns: 1% + 1.2(r-M-r-f) with an R2 of 0.576 and

market's average return was 14%. Performance is measured using an index

market's average return was 14%. Performance is measured using an index model regression on excess returns: 1% + 1.2(r-M-r-f) with an R2 of 0.576 and residual standard deviations of 10.3% What is the beta of Stock A? Consider the (excess return) index-model regression results for stocks A. The risk-free rate over the period was 6%, and the 0-5 O 1.2 O 10.3

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