What Is the Main Criticism of the CAPM Referred to as Roll's

question 5

Multiple Choice

What is the main criticism of the CAPM referred to as Roll's critique?

• A)The stock market is not efficient.
• B)The CAPM does not hold because beta is not a good measure of risk.
• C)The market portfolio is impossible to estimate.
• D)All of the above are criticism of CAPM.

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Definitions:

Sternberg

Robert Sternberg is a psychologist who proposed the triarchic theory of intelligence, which includes analytical, creative, and practical intelligence.

Aristotle

Ancient Greek philosopher and scientist whose work in philosophy, ethics, and natural sciences profoundly influenced Western intellectual history.

Different Intelligences

A theory suggesting that intelligence is not a single general ability but consists of a variety of distinct types of cognitive capabilities.

Gardner

Refers to Howard Gardner, an American developmental psychologist best known for his theory of multiple intelligences.