Fama and MacBeth found that the relationship between average excess returns and betas was ___________.

Question

Quizplus · Accepted Answer

Fama and MacBeth found a relationship between average excess returns and betas, and this relationship was consistent with earlier studies that suggested a linear relationship between the two variables. Therefore, options A and C are both correct. Option D can be eliminated as Fama and MacBeth did examine the relationship. Option B is incorrect as the study did find a relationship between excess returns and beta.

Fama and MacBeth Found That the Relationship Between Average Excess