Question: Explain whether the following statement is true or false: There may be some truth in the CAPM model, but over the past year many stocks

Explain whether the following statement is true or false: 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. Consequently, the CAPM is not an optimal model.

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