What are two potential tests that can be conducted to verify the CAPM? What are the results

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What are two potential tests that can be conducted to verify the CAPM? What are the results of such tests? What is roll’s critique of CAPM tests?

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Financial management theory and practice

ISBN: 978-0324422696

12th Edition

Authors: Eugene F. Brigham and Michael C. Ehrhardt

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Question Posted: Mar 25, 2010 06:13 AM

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What are two potential tests that can be conducted to verify the CAPM? What are the results

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Since the CAPM was developed on the basis of a set of unrealistic assumptions empirical tests should be used to verify the CAPM The first test looks f...View the full answer

Financial management theory and practice

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