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Question
Which of the following is not one of the reasonable conclusions of the CAPM reached by a consensus of the empirical results?a. The intercept term is generally higher than the RF.
b. The SML appears to be non-linear.
c. The slope of the CAPM is generally less steep than suggested by the theory.
d. CAPM is an imperfect model for the explanation of the cross section of security returns.
Answer
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