Roll's critique is a famous analysis of the validity of empirical tests of the capital asset pricing model (CAPM) by Richard Roll. It concerns methods to formally test the statement of the CAPM, the equation E ( R i ) = R f + β i m [ E ( R m ) − R f ] .
Roll's critique is a famous analysis of the validity of empirical tests of the capital asset pricing model (CAPM) by Richard Roll. It concerns methods to formally test the statement of the CAPM, the equation E ( R i ) = R f + β i m [ E ( R m ) − R f ] .
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