What is the Single Index Model equation? 1) How is it different from the CAPM equation? 2) What is one fundamental consequence of expressing returns with SIM rather than CAPM? 3) What are the sources of return in SIM? 4) Why was SIM developed in response to CAPM?

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Single Index Model SIM Equation Rit i iRmt Rf it Where Rit Return of asset i in period t i Alpha of ... View the full answer