Give the following true population SIM (not estimated SIM): Ri-Rf=0.1%+1.2(Rb-Rf)+ϵi When estimating this true SIM, what

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Give the following true population SIM (not estimated SIM):
Ri-Rf=0.1%+1.2(Rb-Rf)+ϵi
When estimating this true SIM, what will be the estimated value
of alpha (the intercept), when the variance of
ϵi
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%