Question: Fund A has no ability to generate positive CAPM alpha. Fund B has ability to generate positive CAPM alpha. Which is correct? a. Fund A

Fund A has no ability to generate positive CAPM alpha. Fund B has ability to generate positive CAPM alpha.

Which is correct?

a. Fund A may still make money on average if it invests in the market portfolio with zero alpha

b. None of the above

c. Fund A will not make money on average in the long term

d. Fund B will always make money every year

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