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.

---

Definitions:

Immigrated

The act of moving to a country different from one's place of birth to live there permanently.

Bipolar Disorder

A mental health condition marked by extreme mood swings, including emotional highs (mania or hypomania) and lows (depression).

Schizophrenia

A chronic brain disorder characterized by delusions, hallucinations, disorganized speech or behavior, and impaired cognitive ability.

Anorexia Nervosa

A condition involving an intense phobia of putting on weight, accompanied by a steadfast refusal to sustain a weight that is within a healthy range.