A Criticism of the CAPM Is That It

question 38

Multiple Choice

A criticism of the CAPM is that it:

• A) ignores the return on the market portfolio.
• B) ignores the risk-free return.
• C) requires a single measure of systematic risk.
• D) utilizes too many factors.

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Definitions:

Insert Columns

The process of adding new columns to a table, spreadsheet, or document to organize data more effectively.

Insert Rows

In computing, particularly in databases and spreadsheets, it means to add new rows to an existing table or sheet.

Table Width

The horizontal measurement across a table, determining how much space it occupies within a document or webpage.

Table Colors

The use of different colors to enhance the visual appearance and distinguish various parts of a table in a document or presentation.