CH 7: Capital Asset Pricing Model

Question 1

Mean Reversion or regression of the mean?

Answer 1

P. 208

Question 2

Presdicted SML and Empirical

Answer 2

PP. Investors are more risk tolerance than in theory

Question 3

multi-factor models, unlike CAPM

Answer 3

pp. fpromula 7.6

Question 4

Fama-French Model

Answer 4

PP. Is not liked by acdemics

Question 5

Arbitrage Price Modeling

Answer 5

PP.