Which statement is not true of the capital asset pricing, Ask an Expert

Management Studies

Which statement is NOT true of The Capital Asset Pricing Model (CAPM):

a. CAPM defines required return for a level of risk

b. CAPM implies that the market will not compensate investors for the total risk.

c. CAPM is a linear function, the “Security Market Line.”

d. CAPM is a one-factor arbitrage pricing model.

e. CAPM is a good predictor of returns on an individual security

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92285524

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