A Linear Regression Was Done to Estimate the Relation Between

question 47

Multiple Choice

A linear regression was done to estimate the relation between Sprint's stock returns and the market's return.The intercept of the line was found to be 0.23 and the slope was 1.47.Which of the following statements is TRUE regarding Sprint's stock?

• A)Sprint's beta is 0.23.
• B)Sprint's beta is 1.47.
• C)The risk-free rate is 1.47%.
• D)The standard deviation of Sprint's excess returns is 23%.
• E)Sprint's beta is between 0.23 and 1.47.

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