The CAPM Is Built on Historic Conditions, Although in Most

question 59

True/False

The CAPM is built on historic conditions, although in most cases we use expected future data in applying it.Because betas used in the CAPM are calculated using expected future data, they are not subject to changes in future volatility.This is one of the strengths of the CAPM.

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Definitions:

Self-Appraisal

A process by which an individual evaluates his or her own performance, strengths, and weaknesses.

Personal Standards

The individual beliefs and values that guide behavior and decision-making practices.

Net Promoter Score

A metric used to gauge the loyalty of a firm's customer relationships, based on how likely customers are to recommend the company's product or service to others.

Customer Lifetime Value

The total worth to a business of a customer over the whole period of their relationship, an important metric in assessing how much a company should spend to retain a customer.