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What Does It Mean When the CAPM Is Called "Robust

Question 8

Multiple Choice

What does it mean when the CAPM is called "robust?"


A) The CAPM requires no assumptions.
B) Even if the CAPM's major assumptions are relaxed, most of its conclusions still hold.
C) The CAPM is based on realistic assumptions.
D) No other model can represent stock returns better than the CAPM.

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