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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