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look at : r_it = r_ft = alpha_i + beta_i (r_Mt - r_ft) + e_it. Try your best to discuss why in this model we
look at : r_it = r_ft = alpha_i + beta_i (r_Mt - r_ft) + e_it. Try your best to discuss why in this model we assume alpha_i and beta_i are independent of time (e.g. their subscript doesn't have t, just i). Is this valid? Why do you think the risk-free return r_ft depends on time t?
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