A Common Criticism of the CAPM Is That It

question 50

Multiple Choice

A common criticism of the CAPM is that it

• A)ignores the return on the market portfolio.
• B)uses too many factors.
• C)requires only a single measure of systematic risk.
• D)ignores the risk-free rate of return.

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Definitions:

Kohlberg's Stages

A theory of moral development proposed by Lawrence Kohlberg, consisting of three levels: Pre-conventional, Conventional, and Post-conventional.

Gender Development

The process by which individuals acquire and internalize the values, behaviors, and norms associated with being male or female in their culture.

Intersexed

Referring to individuals born with reproductive or sexual anatomy that doesn't fit typical definitions of male or female, often involving variations in chromosomes, gonads, or genitals.

Ambiguous Sex Organs

Physical genitalia that do not fit typical definitions for male or female bodies, often present in intersex conditions.