In the results of the earliest estimations of the security market line by Lintner (1965) and by Miller and Scholes (1972) , it was found that the average difference between a stock's return and the risk-free rate was ________ to its nonsystematic risk.
A) positively related
B) negatively related
C) unrelated
D) related in a nonlinear fashion
Correct Answer:
Verified
Q13: In the 1972 empirical study by Black,
Q14: Given the results of the early studies
Q15: Consider the regression equation: ri - rf
Q16: The CAPM is not testable unless
A)the exact
Q17: Consider the regression equation: rit - rft
Q19: _ argued in his famous critique that
Q20: If a professionally-managed portfolio consistently outperforms the
Q21: Tests of multifactor models indicate
A)the single-factor model
Q22: Fama and French (2002) studied the equity
Q23: Fama and French (1992) found that
A)firm size
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