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    Investment Analysis and Portfolio Management Study Set 1
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    Exam 7: Asset Pricing Models
  5. Question
    The Capital Asset Pricing Model (CAPM) Extends Capital Market Theory
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The Capital Asset Pricing Model (CAPM) Extends Capital Market Theory

Question 79

Question 79

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The capital asset pricing model (CAPM) extends capital market theory in a way that allows investors to evaluate the risk-return trade-off for both diversified portfolios and individual securities.

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