But others found a correlation and in turn criticized the assumptions made by Fama and French and the database they used (Weber, 2006, p. 85). One of the most important and often cited studies that support the CAPM was carried out by Black, Jensen and Scholes in 1972. The study came to the conclusion that a positive relationship between the beta and the average return exists. Unfortunately, the slope of the security market line was too flat to explain the empirical values. Furthermore, the empirical analysis indicated a risk-free rate that was higher than the actual one. This conclusion was supported by many other studies, . Blume and Friend (1973) and Fama and MacBeth (1973). (Fama & French, 2004, p. 32)
Sudano had co-founded the band Alive N Kickin’ in 1968; in 1970, James wrote and produced their top-10 hit, “Tighter, Tighter.” Five years after leaving that band, Sudano co-founded Brooklyn Dreams. That same year, 1977, he met Summer, who began writing with the band. They penned “Take It to the Zoo” for the Thank God It’s Friday film soundtrack, then the band appeared as the Planotones in the film, American Hot Wax. They hit No. 4 with Summer duetting on “Heaven Knows,” and in 1979, Summer and the band wrote the No. 1 pop and R&B hit “Bad Girls.” It became the title song to the most popular album of her career.