Asked by

Bharti Sharma
on Nov 04, 2024

verifed

Verified

Given the results of the early studies by Lintner (1965) and Miller and Scholes (1972) , one would conclude that

A) high beta stocks tend to outperform the predictions of the CAPM.
B) low beta stocks tend to outperform the predictions of the CAPM.
C) there is no relationship between beta and the predictions of the CAPM.
D) high beta stocks and low beta stocks tend to outperform the predictions of the CAPM.
E) None of the options are correct.

Lintner

Lintner refers to John Lintner, an economist known for his work on the dividend policy of firms and contributions to the capital asset pricing model (CAPM).

Miller and Scholes

Refers to Merton Miller and Myron Scholes, economists recognized for their work in finance, including the development of the Black-Scholes model for option pricing.

  • Investigate the results and analysis of empirical research on the CAPM and multifactor models.
verifed

Verified Answer

LR
Lovely RajianaNov 04, 2024
Final Answer:
Get Full Answer