menu-iconExamlexExamLexServices

Discover

Ask a Question
  1. All Topics
  2. Topic
    Business
  3. Study Set
    Principles of Corporate Finance Study Set 3
  4. Exam
    Exam 8: Portfolio Theory and the Capital Asset Pricing Model
  5. Question
    A Common Criticism of the CAPM Is That It
Solved

A Common Criticism of the CAPM Is That It

Question 50

Question 50

Multiple Choice

A common criticism of the CAPM is that it


A) ignores the return on the market portfolio.
B) uses too many factors.
C) requires only a single measure of systematic risk.
D) ignores the risk-free rate of return.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q45: Florida Company (FC)and Minnesota Company (MC)are both

Q46: If the expected return of stock A

Q47: The distribution of daily returns over short

Q48: In practice, one would generate efficient portfolios

Q49: The distribution of returns, measured over long

Q51: It is not possible to earn a

Q52: Assume the following data for a stock:

Q53: Where would underpriced and overpriced securities plot

Q54: If a stock were overpriced, it would

Q55: Assume the following data for a stock:

Examlex

ExamLex

About UsContact UsPerks CenterHomeschoolingTest Prep

Work With Us

Campus RepresentativeInfluencers

Links

FaqPricingChrome Extension

Download The App

Get App StoreGet Google Play

Policies

Privacy PolicyTerms of ServiceHonor CodeCommunity Guidelines

Scan To Download

qr-code

Copyright © (2025) ExamLex LLC.

Privacy PolicyTerms Of ServiceHonor CodeCommunity Guidelines