Which of the following statements about the capital asset, Ask an Expert

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Which of the following statements about the capital asset pricing model (CAPM), which is the "father" of the security market line (SML), is(are) most correct?

The CAPM is based on a restrictive set of assumptions.

It has not been empirically verified.

In general, its inputs are difficult to estimate, particularly E(g).

Despite its deficiencies, it provides investors with a rational way of thinking about required rates of return.

All of the above responses are correct.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91769093

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