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Fama and MacBeth (1973) Found That the Relationship Between Average

Question 1

Multiple Choice

Fama and MacBeth (1973) found that the relationship between average excess returns and betas was


A) linear.
B) nonexistent.
C) as expected, based on earlier studies.
D) linear and as expected, based on earlier studies.
E) Fama and MacBeth did not examine the relationship between excess returns and beta.

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