Question: Yes. It is a Multiple Choice Question. 1. If your mutual fund manager generates returns that earn a statistically significant CAPM a, MUST that manager

Yes. It is a Multiple Choice Question. 1. If your mutual

Yes. It is a Multiple Choice Question.

1. If your mutual fund manager generates returns that earn a statistically significant CAPM a, MUST that manager be outperforming the market? (a) Yes, CAPM a means the asset is earning return that is not explained by exposure to the market (b) Yes, assuming you have enough data to generate reliable estimates of a and B (c) No, you will only find a significant CAPM a when you do not have a long data sample (d) No, it depends on the beta of the stock (e) No; a missing risk factor could explain the manager's performance

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