a. What is the implication of the empirical SML being too flat? b. Do high- or low-beta
Question:
a. What is the implication of the empirical SML being “too flat”?
b. Do high- or low-beta stocks tend to outperform the predictions of the CAPM?
c. What is the implication of the estimate of γ2?.
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Related Book For
ISE Investments
ISBN: 9781260571158
12th International Edition
Authors: Zvi Bodie, Alex Kane, Alan Marcus
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