Studies Strongly Suggest That the CAPM Be Abandoned and Replaced

question 133

True/False

Studies strongly suggest that the CAPM be abandoned and replaced with the APT.

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Definitions:

Self-Fulfilling Prophecy

A phenomenon where a belief or expectation, whether correct or not, influences the outcome in a way that confirms the belief.

Expectations

Anticipated outcomes or behaviors in a given situation.

Behavior

The actions or reactions of an individual or group, often in response to their environment.

Halo Effect

A cognitive bias where an individual's overall impression of a person influences how they feel and think about that person's character.