Although the CAPM Is Intuitively Appealing in That It Relates

Multiple Choice

Although the CAPM is intuitively appealing in that it relates risk and return in a straightforward manner, the model's predictive value is often challenged because:

A) statistical tests have not been conclusive in validating the relationship between beta and return proposed by the CAPM.
B) the CAPM only addresses unsystematic risk, not market risk.
C) beta measures only the stock's coefficient of business-specific risk.
D) All of the above