Burton Malkiel Results Show That

question 10

Multiple Choice

Burton Malkiel results show that

• A)Beta tends to 1 over time.
• B)CAPM is not testable in practice.
• C)the distribution of alphas is roughly bell shaped.
• D)CAPM can be tested in empirical studies.

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Definitions:

Decision Making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.

Line Structure

The simplest organizational structure, in which direct lines of authority extend from the top manager to the lowest level of the organization.