Where $R_M$ is the return on the market portfolio, $R$ is the realized return of the portfolio, and $R_{\text{f}\text{r}\text{e}\text{e}}$ is the risk free rate.

Suppose that, after using a linear regression to estimate the equation, the estimated value of $$ is ${}_p.$

If this means that the portfolio performance is

than the required return derived from the CAPM.

True or False: This value for ${}_p$ can be due to excessive operating expenses.

True

False