All of the Following Questions Remain to Be Answered in the Real

question 114

Multiple Choice

All of the following questions remain to be answered in the real world except

• A) What is a good proxy for the market portfolio?
• B) What happens when you cannot borrow or lend at the risk free rate?
• C) How good is the capital asset model as a predictor?
• D) What is the beta of the market portfolio of risky assets?
• E) What is the stability of beta for individual stocks?

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