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.
E)None of the above.

Question

Quizplus · Accepted Answer

The CAPM requires a single measure of systematic risk, which is captured by the beta coefficient. However, it is argued that this oversimplifies the complexities of portfolio management and risk assessment, leading to limitations in its application.

A Criticism of the CAPM Is That It