The Fact That Tests Have Shown the CAPM Intercept to Be

question 34

Multiple Choice

The fact that tests have shown the CAPM intercept to be greater than the RFR is consistent with a(n)

• A) zero beta model.
• B) unstable beta or a higher borrowing rate.
• C) zero beta model or a higher borrowing rate.
• D) higher borrowing rate.
• E) unstable beta.

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