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True or false and please explain why Question 5: Suppose you...

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Finance

True or false and please explain why

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Question 5: Suppose you make a "scatter plot", each point representing a pair of contemporaneous returns from a time series of returns on the market portfolio and a single asset. If the CAPM holds, you would expect all points to line up perfectly on a straight line, the slope of which is the asset's beta. (8 %)

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