# You are told that Land’s End, a catalog retailer, earned an excess return (Jensen’s alpha),in annualized terms, of 32% over the last 5 years and that…

You are told that Land’s End, a catalog retailer, earned an excess return (Jensen’s alpha),in annualized terms, of 32% over the last 5 years and that it had a beta of 1.50 during the same period. Assuming that this estimate came from a quarterly regression of stock returns against a market return, and that the average annualized risk free rate during the period was 4.8%, estimate the intercept on the regression.

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