One Key Conclusion of the Capital Asset Pricing Model Is

question 65

True/False

One key conclusion of the Capital Asset Pricing Model is that the value of an asset should be measured by considering both the risk and the expected return of the asset, assuming that the asset is held in a well-diversified portfolio.The risk of the asset held in isolation is not relevant under the CAPM.

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Definitions:

Lots Of Money

A colloquial term referring to a substantial amount of currency or financial resources.

Entrepreneurs

People who initiate, manage, and assume the risks of starting a new business venture.

Opportunity

A set of circumstances that makes it possible to do something, often used in the context of business to denote a chance for progress or profit.

Business Owners

Individuals who own and have invested resources in a business, responsible for strategic decision-making and managing operations.