Consider the following time series model applied to daily data:



where rt are the returns, and D1, D2, D3 and D4 are dummy variables. D1 = 1 on Monday and zero otherwise; D2 = 1 on Tuesday and zero otherwise, ..., D4 = 1 on Thursday and zero otherwise. What is the interpretation of the parameter estimate for the intercept?
(A)It is the average return on Friday (B)It is the average return on Monday (C)It is the Friday deviation from the mean return for the week (D)It is the Monday deviation from the mean return for the week.
A