Examlex
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.
Uncertainty and Volatility
Conditions characterized by unpredictable changes and a lack of stability, often referring to economic or financial markets.
Mechanistic
Describing an organizational structure that is highly formal, rigid, and bureaucratic, focusing on hierarchy, defined roles, and rules.
Organic Form
An organizational structure characterized by flexibility, decentralized decision-making, and a lack of formal procedures and hierarchies, often adapting quickly to environmental changes.
Perfect Substitute
A good, service, or resource that can be used in place of another with no loss of value or utility to the consumer.
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