Question: Use model (16.19) to estimate the expected excess return for all seven stocks. Compare these results to using the sample means of the excess returns

Use model (16.19) to estimate the expected excess return for all seven stocks. Compare these results to using the sample means of the excess returns to estimate these parameters. Assume for the remainder of this lab that all alphas are zero.

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Eq 1619 from the book is given by R jt ft j R Mt ft jt 23 Thus the expected excess return o... View full answer

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