Which of the Following Is a Testable Proposition in Empirical

question 35

Multiple Choice

Which of the following is a testable proposition in empirical regression tests of the CAPM of average excess returns against beta?

• A) The intercept is zero.
• B) The beta coefficient is the market risk premium.
• C) The market risk premium is greater than the risk-free rate
• D) all of the aboye

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Definitions:

Mental Categories

The classifications of cognitive information into organized groups in the brain, facilitating understanding and memory.

Simultaneously

Occurring, existing, or done at the same time as something else, indicating a concurrent action or event.

Number System

A mathematical system for representing and working with numbers, such as the decimal or binary systems.

Robert Siegler

A developmental psychologist known for his research on children's thinking and adaptive strategy choice model explaining how children learn and solve problems.