This doesn't make a lot of sense in this example with CAPM. The economic theory provides something that is abjectly wrong. It is literally claiming there is a p

This doesn't make a lot of sense in this example with CAPM. The economic theory provides something that is abjectly wrong. It is literally claiming there is a positive relationship between two quantities when the evidence suggests the relationship is negative. The theory is grossly qualitatively wrong, not merely just on the edge of being quantitatively wrong in a few cases or something.