In the 1972 empirical study by Black,Jensen,and Scholes,they found that the risk-adjusted returns of high beta portfolios were _____________ the risk-adjusted returns of low beta portfolios.
A)greater than
B)equal to
C)less than
D)unrelated to
E)more information is necessary to answer this question

Question

Quizplus · Accepted Answer

The study found that the risk-adjusted returns of high beta portfolios were less than the risk-adjusted returns of low beta portfolios. This implies that high beta portfolios are riskier than low beta portfolios and do not offer higher returns to compensate for the additional risk.

In the 1972 Empirical Study by Black,Jensen,and Scholes,they Found That