The CAPM Is Built on Historic Conditions, Although in Most

question 59

True/False

The CAPM is built on historic conditions, although in most cases we use expected future data in applying it.Because betas used in the CAPM are calculated using expected future data, they are not subject to changes in future volatility.This is one of the strengths of the CAPM.

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Definitions:

Action

In computing, a term used to describe any operation, function, or task performed by software or triggered by user interaction.

Properties

Characteristics or attributes of objects in programming and software development that define or modify their appearance, behavior, or other traits.

Conditional Expression

An expression used in programming that evaluates to true or false based on certain conditions, often used in decision-making.

If Statement

A conditional statement in programming that executes a set of commands if a specified condition is true.