The intercept in the regression equations calculated by beta books is equal to
A. ? in the CAPM.
B. ? + rf(1 + ?).
C. ? + rf(1 – ?).
D. 1 – ?.
C. ? + rf(1 – ?).
The intercept that beta books call alpha is really, using the parameters of the CAPM, an estimate of a + rf (1 – b). The apparent justification for this procedure is that, on a monthly basis, rf(1 – b) is small and is apt to be swamped by the volatility of actual stock returns.
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Answer the following statement true (T) or false (F)
In conducting tests of differences between two percentages:
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Speech-oral, written, or symbolized by conduct-is not subject to restrictions
Indicate whether the statement is true or false