Question: 1. Explain the main CAPM hypothesis and how to design and test, step by step, an investment strategy based on momentum. Finally, explain how to

1. Explain the main CAPM hypothesis and how to design and test, step by step, an investment strategy based on momentum. Finally, explain how to measure the strategy performance using three different performance measures

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The main hypothesis of the Capital Asset Pricing Model CAPM is that the expected return of an asset is determined by its systematic risk as measured b... View full answer

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