The CAPM is not testable unless
A) the exact composition of the true market portfolio is known and used in the tests.
B) all individual assets are included in the market proxy.
C) the market proxy and the true market portfolio are highly negatively correlated.
D) a and b.
E) b and c.
Correct Answer:
Verified
Q32: Fama and French,in their 1992 study,found that
A)
Q33: Strongest evidence in support of the CAPM
Q34: Benchmark error
A) refers to the use of
Q35: Early tests of the CAPM involved
A) establishing
Q36: Which of the following would be required
Q39: Tests of the CAPM that use regression
Q39: According to Roll,the only testable hypothesis associated
Q40: Which of the following must be done
Q41: A major finding by Heaton and Lucas
Q42: Studies by Chan,Karceski,and Lakonishok (2003)and La Porta,Lakonishok,Shleifer,and
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