In the 2nd stage regression used to test the CAPM, researchers reduced the measurement error in betas

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In the 2nd stage regression used to test the CAPM, researchers reduced the measurement error in betas from the 1ststage regression. What was the source of the measurement error and how did they reduce the error? Explain the answer

Posted Date: May 15, 2024 12:42 PM

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In the 2nd stage regression used to test the CAPM, researchers reduced the measurement error in betas

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Measurement Error in Betas from the 1st Stage Regression in CAPM Testing When testing the Capital Asset Pricing Model CAPM using a twostage regression ... View the full answer

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