Today in an increasingly globalized world,it makes more sense to use an internationally diversified portfolio of securities as the market portfolio.This CAPM is called the ________.

Question

Quizplus · Accepted Answer

The question is asking for the name of the CAPM which uses an internationally diversified portfolio as the market portfolio. The most fitting name for such a model is the "world CAPM," as it considers securities from all over the world. Options A and C are too specific, while option B refers to a model that uses a domestic market portfolio.

Today in an Increasingly Globalized World,it Makes More Sense to Use