In Empirical Tests of the CAPM in Excess Return Form,the

question 37

Multiple Choice

In empirical tests of the CAPM in excess return form,the intercept in a regression of average returns against beta should be:

• A) Zero
• B) one
• C) the risk-free rate
• D) none of the above

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Definitions:

Strecker Synthesis

A chemical reaction for synthesizing amino acids by reacting an aldehyde with ammonium chloride and potassium cyanide, followed by hydrolysis.

Racemic Alanine

A mixture of equal parts of the D- and L-enantiomers of alanine, making it optically inactive due to the internal compensation of optical activity.

Acetaldehyde

A volatile, colorless, and flammable liquid organic compound, used as an intermediate in the synthesis of various chemicals.

3-Methylthiopropanal

An organic compound characterized by a three-carbon aldehyde functional group attached to a sulfur atom-containing methyl group.