PM Mock Garfield Case [Quant]

I have a doubt in the Q9. It asks us to predict the return when NASDAQ index is 0.05633

THe answer is

0.001795 + (1.08601 × 0.05633) = 0.06297

But, why are we considering the intercept term when it is not significant? Shouldn’t the answer be: 0 + (1.08601 × 0.05633) = 0.06118?

You can’t just ignore the intercept or any coefficient only because it is not significant. You would need to correct for whatever reason, or exclude the variable.

Hence, in this case you still use the regression formula.