A major strength of the CAPM is that it is basically testable because the true market portfolio is an attainable portfolio diversified across all risky assets in the world.

Question

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The CAPM (Capital Asset Pricing Model) assumes the existence of a "market portfolio" that is fully diversified and includes all available assets in the world. However, in reality, constructing such a portfolio is practically impossible due to the vast number of assets and the difficulty in accessing or including all of them. This makes the true market portfolio unattainable and challenges the testability of the CAPM based on this idealized concept.

A Major Strength of the CAPM Is That It Is