Multiple Choice
Which of the following is a disadvantage of CAPM?
A) It assumes that investors are indifferent to risk and return.
B) It does not capture all the relevant risk factors in the economy.
C) It ignores systematic risk.
D) It assumes that no two securities have significant correlation.
Correct Answer:
Verified
Correct Answer:
Verified
Q3: Which of the following is the
Q4: The beta of a stock or portfolio
Q5: Explain the concept of efficient frontier.
Q6: Which of the following can be considered
Q7: Which of the following equations is used
Q9: The efficient frontier represents:<br>A)the means and correlation
Q10: Which of the following is a reason
Q11: Which of the following is an assumption
Q12: The market portfolio is:<br>A)a portfolio where the
Q13: To identify the tangency portfolio:<br>A)we must find