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International CAPM (ICAPM) Assumes That There Is a Global Market

question 54

True/False

International CAPM (ICAPM) assumes that there is a global market in which the firm's equity trades, and estimates of the firm's beta, and the market risk premium, must then reflect this global portfolio.


Definitions:

Remainder Operator

An operator (usually %) used in programming to compute the remainder of the division of two numbers.

Integer Division

The process of dividing two integers resulting in an integer quotient, discarding any remainder.

Scientific Notation

A way of expressing numbers that are too big or too small to be conveniently written in decimal form, using powers of 10.

Value

A piece of data or information that can be stored in a variable, passed as a parameter, or returned by a method in programming.

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