In case of a simple CAPM being used to estimate a time series data:
A) the mean of a residual risk should be equal to zero.
B) the regression coefficient should be equal to zero.
C) the difference between the market return and the riskfree rate of return should be equal to zero.
D) the beta of the portfolio should be equal to zero.
Correct Answer:
Verified
Q7: Assume that the risk-free rate is 9%
Q8: The existence of riskless lending and borrowing
Q9: The standard CAPM implies:
A) investors are compensated
Q10: Discuss whether the following statement is true
Q11: Which statement of the following statements is
Q13: Assume that the assumptions underlying the standard
Q14: For the following three questions, assume
Q15: Discuss whether the following statement is true
Q16: Assume that the risk-free rate is 9%
Q17: The CAPM implies that:
A) investors may invest
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