The Main Shortcoming of CAPM Is That It

question 38

Multiple Choice

The main shortcoming of CAPM is that it

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

Understand the concept and outcomes of sealed-bid versus open auctions.

Calculate expected values and infer bidder valuations from auction outcomes.

Distinguish between the strategic approaches to bidding in first-price and second-price auctions.

Assess the effectiveness of auctions in achieving fair market values.