There is little doubt that the CAPM captures everything that is going on in the market.

Question

Quizplus · Accepted Answer

The CAPM is a widely used model for pricing securities and estimating expected returns, but it has been subject to criticism and limitations. It assumes perfect markets, linear relationships between returns and market risk, and that all investors have the same expectations and access to information. Therefore, it may not capture all the factors that affect asset pricing and returns in the real world.

There Is Little Doubt That the CAPM Captures Everything That