The Fact That Tests Have Shown the CAPM Intercept to Be

question 3

Multiple Choice

The fact that tests have shown the CAPM intercept to be greater than the RFR is consistent with a(n)

• A) Zero beta model.
• B) unstable beta or a higher borrowing rate.
• C) Zero beta model or a higher borrowing rate.
• D) higher borrowing rate.
• E) unstable beta.

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Definitions:

Court Cases

Legal disputes that are brought before a court of law for resolution.

Case of First Impression

Refers to a legal case which presents a unique issue that has not previously been decided by the jurisdiction's courts.

New Jersey Supreme Court

The highest court in the U.S. state of New Jersey, with ultimate appellate jurisdiction over all cases in the state's court system.

Surrogate Mother

A woman who agrees to carry and give birth to a child for another person or couple, often through a legal agreement.