As we will see in the next chapter, most tests of the CAPM involve tests on common

Question:

As we will see in the next chapter, most tests of the CAPM involve tests on data and perform the tests using the S&P index. You have just had a revelation that bonds are also marketable assets and thus should belong in the market return.
Show what effect leaving them out might have on with different characteristics.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...