Which of the following findings from empirical research on asset pricing is in favor of CAPM?

Low beta stocks deliver positive alpha on average.

Average alpha from Large firm stocks is negative.

Returns can be predicted by other factors than market risk premium.

Returns are positively related to beta.

Question $2$

Suppose $rf=4\%($i$.$e$.,$ risk$-$free rate$)$ and $E[rm]=9\%($i$.$e$.,$ Expected market return$).$

We know beta for stock $x,Y,Z,$ and $W$ :

Beta for $W$ is $0\mathrm{.}3$

Beta for $x$ is $0\mathrm{.}7$

Beta for $Y$ is $1$

Beta for $Z$ is $1\mathrm{.}5$

An analyst you follow has the following expectations on these sthrs: $E[rw]=5\mathrm{.}5\%,E[rx]=7\mathrm{.}5\%,E[ry]=10\%,E[rz]=11\mathrm{.}5\%$

Which one is not fairly priced according to CAPM?

z

Y

x

W