The most uncertain value used in the Capital Asset Pricing Model is
A) beta.
B) the risk-free rate.
C) expected return on the market.
D) all are equally uncertain.

Question

Quizplus · Accepted Answer

The expected return on the market is the most uncertain value in the Capital Asset Pricing Model (CAPM) because it involves predicting future market returns, which is inherently uncertain and subject to many unpredictable factors.

The Most Uncertain Value Used in the Capital Asset Pricing