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.

---

Definitions:

Corporate Brand

The collective identity, including image and reputation, of a corporation that distinguishes it from its competitors.

Starbucks

A multinational chain of coffeehouses and roastery reserves known for popularizing specialty coffee.

Events

Occurrences or happenings, especially those of significance, that are planned or unfold unpredictably.

Ethnography

The study of naturally occurring human behavior through a researcher’s immersion into the culture of a group or organization; an exploration of how humans engage in meaning construction through communication processes.