Multiple Choice
Tests of the CAPM that use regression techniques are subject to inaccuracies because
A) the statistical results used are almost always incorrect.
B) the slope coefficient of the regression equation is biased downward.
C) the slope coefficient of the regression equation is biased upward.
D) the intercept of the regression equation is biased downward.
E) the intercept of the regression equation is equal to the risk-free rate.
Correct Answer:
Verified
Correct Answer:
Verified
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