An Analyst Estimates the Index Model for a Stock Using

question 52

Multiple Choice

An analyst estimates the index model for a stock using regression analysis involving total returns.The estimated the intercept in the regression equation is 6% and the β is 0.5.The risk-free rate of return is 12%.The true β of the stock is ________.

• A)0%
• B)3%
• C)6%
• D)9%
• E)none of the above

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Definitions:

Defamation

A legal term for a false statement made by one party about another to a third party, causing harm to the subject's reputation.

Emotional Distress

A legal term referring to the suffering that comes from experiencing intensely negative emotions due to another's actions.

Defamation Per Se

Statements presumed to be harmful to one's reputation without needing proof of harm, typically involving false accusations of criminal behavior or a lack of professional integrity.

Proof of Injury

Evidence required in a legal context to demonstrate the existence and extent of an injury sustained by an individual.