Fama and French documented
A) that CAPM is confirmed in empirical studies.
B) number of other extra-market risk factors.
C) Beta tends to 1 over time.
D) CAPM is not testable in practice.
Correct Answer:
Verified
Q44: Assume that a security is fairly priced
Q49: What is the expected return of a
Q50: Standard deviation and beta both measure risk,
Q51: In equilibrium, the marginal price of risk
Q52: The expected return-beta relationship
A)is the most familiar
Q53: Burton Malkiel results show that
A)Beta tends to
Q54: The capital asset pricing model assumes
A)all investors
Q58: If investors do not know their investment
Q59: The expected return-beta relationship of the CAPM
Q60: An underpriced security will plot
A)on the security
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