Tests of the CAPM suggest the trade-off between expected return and risk is an upward-sloping straight line.
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Q47: The characteristic line is the regression fitting
Q48: In a declining market, a portfolio manager
Q49: How are securities chosen and in what
Q50: With the APT, risk is defined in
Q51: Most professional investors use the S&P 500
Q53: Like CAPM, APT does not assume a
Q54: For the past two quarters the risk-free
Q55: The APT is based on the law
Q56: The four-factor model adds a momentum factor
Q57: Beta is a measure of return volatility.
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