Multiple Choice
A study by Mehra and Prescott (1985) found that historical average excess returns
A) have been too small to be consistent with rational security pricing.
B) have been too large to be consistent with rational security pricing.
C) have been too small to be consistent with fractional security pricing.
D) prove CAPM is incorrect.
E) prove the market is efficient.
Correct Answer:
Verified
Correct Answer:
Verified
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