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asset returns are regressed against the estimated betas, determining in the risk premium The crosssectional regressinn (rj = W + T1133 + ui}| gives us

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asset returns are regressed against the estimated betas, determining in the risk premium The crosssectional regressinn (rj = W + T1133 + ui}| gives us the riskfree return (the intercept yin) and the market premium (1'1)

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