Multiple Choice
Which of the following are the two primary advantages of CAPM?
I.Simplicity
II.Absence of estimation error
III.Applicability to both dividend and nondividend paying firms
IV.Explicit adjustment for risk
A) I and II
B) II and III
C) I and III
D) III and IV
E) I and IV
Correct Answer:
Verified
Correct Answer:
Verified
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