Given the Results of the Early Studies by Lintner (1965)

question 39

Multiple Choice

Given the results of the early studies by Lintner (1965) and Miller and Scholes (1972) , one would conclude that

• A) high beta stocks tend to outperform the predictions of the CAPM.
• B) low beta stocks tend to outperform the predictions of the CAPM.
• C) there is no relationship between beta and the predictions of the CAPM.
• D) high beta stocks and low beta stocks tend to outperform the predictions of the CAPM.
• E) None of the options are correct.

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