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What Is the Main Criticism of the CAPM Referred to as Roll's

Question 5

Multiple Choice

What is the main criticism of the CAPM referred to as Roll's critique?


A) The stock market is not efficient.
B) The CAPM does not hold because beta is not a good measure of risk.
C) The market portfolio is impossible to estimate.
D) All of the above are criticism of CAPM.

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