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can not understand why outperforming the market means that return is greater than that predicted by capm Thanks for your explaination A short position in

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can not understand why outperforming the market means that return is greater than that predicted by capm

Thanks for your explaination

A short position in 1.3254,00050,00030=19.5=20 contracts is required. It will be profitable if the stock outperforms the market in the sense that its return is greater than that predicted by the capital asset pricing model

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