Solved

In the Results of the Earliest Estimations of the Security

Question 9

Multiple Choice

In the results of the earliest estimations of the security market line by Miller and Scholes (1972) , it was found that the average difference between a stock's return and the risk-free rate was ________ to its beta.


A) positively related
B) negatively related
C) unrelated
D) inversely related

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q4: Which of the following statements is true

Q5: In the results of the earliest estimations

Q6: Tests of multifactor models indicate<br>A)the single-factor model

Q7: Consider the regression equation: r<sub>it</sub> - r<sub>ft</sub>

Q8: Kandel and Stambaugh (1995) expanded Roll's critique

Q10: In their multifactor model, Chen, Roll, and

Q11: Fama and French (2002) studied the equity

Q12: Liew and Vassalou (2000) show that returns

Q13: Studies by Chan, Karceski, and Lakonishok (2003)

Q14: The CAPM is not testable unless<br>A)the exact