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This article examines the Capital Asset Pricing Model (CAPM) over different frequencies utilizing a recently developed … frequencies than at the higher frequencies in the traditional CAPM. In addition, the overreaction-related mispricing hypothesis …
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α (“Alpha”) has symbolic importance on the investments side of finance. That is, a fundamental pillar of modern finance theory is the risk-return relation, and traditionally alpha is taken to represent the degree of “mispricing” in asset returns. But, such an interpretation is not...
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