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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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The solution to the given question is provided below for your reference

ANy of the two can be used as answer

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

or

The stock market has not outperformed the bond market

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