Which of the following is a disadvantage of CAPM?
A) It assumes that investors are indifferent to risk and return.
B) It does not capture all the relevant risk factors in the economy.
C) It ignores systematic risk.
D) It assumes that no two securities have significant correlation.
Correct Answer:
Verified
Q1: The beta of a risk-free asset:
A)is equal
Q2: Which of the following represents the
Q3: Which of the following is the
Q4: Which of the following can be considered
Q5: Which of the following is a reason
Q7: How are mean-variance analysis and the CAPM
Q8: Momentum is defined as:
A)the number of securities
Q9: Which of the following is an assumption
Q10: To identify the tangency portfolio:
A)we must find
Q11: A portfolio consists of three stocks with
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents