Users of the CAPM should be aware of some of the problems in its practical application. These problems include which of the following?
A) estimating expected future market returns
B) determining the most appropriate measure of the risk- free rate
C) determining an asset's future beta
D) all of the above are problems in application of the CAPM

Question

Quizplus · Accepted Answer

All of the options (A, B, and C) are potential problems in the practical application of the CAPM. Estimating expected future market returns, determining the most appropriate measure of the risk-free rate, and determining an asset's future beta, can all present challenges in implementing the CAPM.

Users of the CAPM Should Be Aware of Some of the Problems