Consider the regression equation: ri − rf = g0 + g1bi + eit where: ri − rf = the average difference between the mon

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Consider the regression equation:ri − rf = g0 + g1bi + eitwhere:ri − rf = the average difference between the monthly return on stock i and the monthly risk-free ratebi = the beta of stock iThis regression equation is used to estimate:
a. the benchmark error and the security market line.
b. the capital market line.
c. the benchmark error.
d. the benchmark error, the security market line, and the capital market line.
e. the security market line.