Yes, the CAPM is testable
(2014)
Journal Article
Guermat, C. (2014). Yes, the CAPM is testable. Journal of Banking and Finance, 46(1), 31-42. https://doi.org/10.1016/j.jbankfin.2014.05.001
It is well-known that cross-sectional tests of the CAPM are problematic. The market indexes used in empirical tests are likely to be inefficient ex ante, which could lead to spurious results even in the absence of sampling errors. This problem has le... Read More about Yes, the CAPM is testable.