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Wrote Analysts has just used the CAPM model to compute an re of 18.679% for the VaperWare company. It found re by, among other things,

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Wrote Analysts has just used the CAPM model to compute an re of 18.679% for the VaperWare company. It found re by, among other things, computing Beta from a regression between the historical stock returns of Vaperware and the SPY ETF. The R2 of this regression was 12%. What could possibly be problematic with WroteAnalysts' estimated r for the VaperWare company? C) The R2 of the regression used to compute Beta is too small to make the regression (and Beta) meaningful. OB) and D) O A) Nothing is wrong, based on the information given, but more info is needed fully answer this question. O B) The future returns of SPY and/orVaperWare may not be well represented by historical returns. B), C), and D) OB) and C) OD) The CAPM model has been supersceded as a "best practice model by the economic equivalent model

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