Which of the following is NOT true concerning the index recommended for use in the CAPM?
A) It should include both traded and untraded investments.
B) The S&P 500 is the most common proxy for U.S. stocks.
C) The S&P 500 and the MSCI World index will produce fairly similar results for U.S. stocks.
D) For less developed countries, a local market index is recommended.
Correct Answer:
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