Almost all tests of the CAPM have confirmed that it explains stock returns, especially for high-beta stocks.

Question

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While the CAPM is a widely accepted theory, empirical tests have produced mixed results and there is no consensus on whether it fully explains stock returns. Some studies have found support for the CAPM, while others have rejected it or found that it only partially explains returns. Additionally, the idea that the CAPM works better for high-beta stocks is a controversial topic among researchers.

Almost All Tests of the CAPM Have Confirmed That It