The Intercept in the Regression Equations Calculated by Beta Books

question 73

Multiple Choice

The intercept in the regression equations calculated by beta books is equal to

• A) α in the CAPM.
• B) α + r_f(1 + β).
• C) α + r_f(1 − β).
• D) 1 − α.

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Definitions:

Milkshakes

A cold beverage made from blending milk, ice cream, and flavorings or sweeteners such as butterscotch, caramel sauce, chocolate syrup, or fruit syrup.

Budget Line

A graphical representation showing all possible combinations of two goods that a consumer can afford with a given income and prices.

Vertical Intercept

The point where a line crosses the vertical axis on a graph, indicating the value of y when x is zero.

Milkshakes

A creamy beverage made from milk, ice cream, and often flavorings or sweeteners like syrup or fruit.