Which of the Following Is NOT an Important Question Regarding

question 43

Multiple Choice

Which of the following is NOT an important question regarding the validity of a global version of the capital asset pricing model (CAPM) ?

• A)barriers to the free and open movement of capital across boundaries
• B)difficulties in estimating a global portfolio, i.e., trading limitations, illiquid markets, and incomplete information
• C)the lack of a single true worldwide risk-free security
• D)all of the above

---

Definitions:

Corporation Owns

Assets or property held by a corporation, which can include cash, inventory, equipment, and real estate.

Premium Or Discount

Refers to the amount by which the selling or purchase price of a financial instrument differs from its face value.

Amortized

The process of gradually reducing the cost of an intangible asset through systematic charges to expense over its useful life.

Brokerage Commission

The fee charged by a broker for facilitating transactions between buyers and sellers.