The following histograms summarize monthly re-turns on Sony, the whole stock market, and risk-free assets. Having seen this comparison, explain why it does not make much difference whether we subtract the risk-free rate from the variables in the CAPM regression.

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0.3 0.2 0.1 0.3 0.2 0.1 0 0.3 0.2 0 -0.1 -0.2 -0.1 -0.2 -0.2 5 10 15 Count 5 15 25 Count 25 75 125 Count