Which of the Following Is NOT Considered a Difficulty with Regards

question 89

Multiple Choice

Which of the following is NOT considered a difficulty with regards to the CAPM?

• A)Betas are not observed.
• B)Expected returns are not observed.
• C)The market proxy is not correct.
• D)Investors' risk preferences are not observed.

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Definitions:

Contributing

Refers to the act of providing resources or help towards a common goal or fund.

Litres of Gasoline

A unit of measure used to quantify volumes of gasoline, commonly used in fuel transactions.

Rate of Consumption

The speed at which goods or services are being used up or consumed.

Kilometres

A unit of length in the metric system equal to 1,000 meters, commonly used to measure distances.