In the results of the earliest estimations of the security market line by Lintner (1965) and Scholes (1972) , it was found that the average difference between a stock's return and the risk-free rate was ________ to its beta.
A) positively related
B) negatively related
C) unrelated
D) inversely related
E) not proportional
Correct Answer:
Verified
Q6: In the empirical study of a multifactor
Q10: The expected return/beta relationship is used
A)by regulatory
Q10: In the 1972 empirical study by Black,
Q11: In the results of the earliest estimations
Q12: In the 1972 empirical study by Black,
Q13: The expected return/beta relationship is not used
A)by
Q15: Consider the regression equation: ri - rf
Q15: In the empirical study of a multifactor
Q16: Fama and MacBeth (1973) found that the
Q19: The research by Fama and French suggesting
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