The assumptions of the CAPM are limited in nature, and close to the actual reality we...

The assumptions of the CAPM are limited in nature, and close to the actual reality we live in, thus the expected return, alpha, and beta calculated from the CAPM can always be taken as 'correct' without further thought.

		TRUE
		FALSE

Expert Solution

False
The assumptions of the CAPM are several in nature, and not close to the actual reality we live in, thus the expected return, alpha, and beta calculated from the CAPM can not always be taken as 'correct' without further thought.

jeff jeffy answered 2 years ago

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