Re-open the CAPM Eviews file and estimate CAPM betas for each of the other stocks in the
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Re-open the CAPM Eviews file and estimate CAPM betas for each of the other stocks in the file.
(a) Which of the stocks, on the basis of the parameter estimates you obtain, would you class as defensive stocks and which as aggressive stocks? Explain your answer.
(b) Is the CAPM able to provide any reasonable explanation of the overall variability of the returns to each of the stocks over the sample period? Why or why not?
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