Which of the Following Is Not One of the Reasonable

question 64

Multiple Choice

Which of the following is not one of the reasonable conclusions of the CAPM reached by a consensus of the empirical results?

• A)The intercept term is generally higher than the RF.
• B)The SML appears to be non-linear.
• C)The slope of the CAPM is generally less steep than suggested by the theory.
• D)CAPM is an imperfect model for the explanation of the cross section of security returns.

Understand the importance of reading and comprehending contracts to avoid unenforceable agreements.

Recognize that contracts are enforced according to their clear and obvious terms as determined by courts.

Differentiate between actual contracts and quasi contracts and understand their legal implications.

Grasp the concept that quasi contracts are imposed to ensure fairness and justice.