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Why does the historical evidence seem to suggest that the CAPM has not held? O Betas have had too little dispersion O Bond prices have been different for different issuers The risk-free rate seems to be negative O Low-beta stocks have not underperformed high-beta stocks O The stock market has not outperformed the bond market O The relation between beta and expected returns seems to be non-linear

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ANy of the two can be used as answer

The relation between beta and expected returns seems to be non-linear

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The stock market has not outperformed the bond market

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