Fama and MacBeth (1973) Found That the Relationship Between Average

question 32

Multiple Choice

Fama and MacBeth (1973) found that the relationship between average excess returns and betas was

• A) quasilinear.
• B) nonexistent.
• C) refutes earlier studies.
• D) linear and as expected, based on earlier studies.
• E) Fama and MacBeth did not examine the relationship between excess returns and beta.

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