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1. If your mutual fund manager generates returns that earn a statistically significant CAPM a, MUST that manager be outperfor

Yes. It is a Multiple Choice Question.

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In my personal opinion ,the CAPM ALPHA has serious limitations in real world, as most of the assumptions are unrealistic. Many investors do not diversify in a planned manner. Besides, Beta coefficient is unstable, varying from period to period depending upon the method of compilation. They may not be reflective of the true risk involved. so my answer will be

e) No, a missing risk factor could explain the manager's performance.

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