Testing the CAPM Is Difficult,as Empirical Tests Have to Rely

question 2

Multiple Choice

Testing the CAPM is difficult,as empirical tests have to rely on __________ data,whereas the CAPM is an __________ model.

• A) ex-ante; ex-ante
• B) ex-ante; ex-post
• C) ex-post; ex-ante
• D) ex-post; ex-post

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Definitions:

Employee Performance

An assessment of how effectively and efficiently an employee carries out their job duties and responsibilities.

Degrees of Freedom

In statistics, the number of independent values or quantities which can be assigned to a statistical distribution without violating any constraints.

Categories

Categories refer to distinct groups or classifications into which items, observations, or phenomena can be organized based on shared characteristics or attributes.

Chi-square

A statistical analysis designed to assess whether two categorical variables have a meaningful relationship.