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The results of the estimated CAPM and Multifactor models for the returns of the TRBCX fund (Large Cap Growth) are given in the image (a)
The results of the estimated CAPM and Multifactor models for
the returns of the TRBCX fund (Large Cap Growth) are given in the image
(a) What is the implication of intercept coefficient? What is the interpretation of each slope coefficient ?
(b) Which model better explains TRBCX fund returns: the CAPM or the Multifactor Model?
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