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

question 11

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)A and B.
• E)none of the above.

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