Which of the Following Statements Is False About Models That

question 23

Multiple Choice

Which of the following statements is false about models that attempt to measure the empirical performance of the CAPM? I) The conventional CAPM works better than the conditional CAPM with human capital.
II) The conventional CAPM works about the same as the conditional CAPM with human capital.
III) The conditional CAPM with human capital yields a better fit for empirical returns than the conventional CAPM.

• A)I only
• B)II only
• C)III only
• D)I and II

---

Definitions:

First Tuesday

Often refers to when elections are held in the United States, traditionally on the first Tuesday after the first Monday in November.

November

The eleventh month of the year in the Gregorian calendar, known for events such as Thanksgiving in the United States.

Electoral Votes

Votes cast by members of the Electoral College in the United States, determining the outcome of the presidential election.

Plurality

In elections, a situation where the candidate who polls more votes than any other candidate is the winner, but does not necessarily receive a majority of all votes cast.