Question: c. There may be some truth in the CAPM model, but over the past year many stocks gave a substantially higher return than the CAPM

c. "There may be some truth in the CAPM model, but over the past year many stocks gave a substantially higher return than the CAPM predicted, and many others gave a substantially lower return. Therefore the CAPM is not a good model to work with." 9 10 Answer 11 d. The CAPM implies that if you could find an investment with a negative beta, its expected return would be less than the interest rate. 12 Answer 13

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