Which of the following is not a widely-recognized problem with CAPM?
Which of the following is not a widely-recognized problem with CAPM?
A) The model is complex and poorly understood by many finance professionals.
B) The model does not accurately explain stock returns over time.
C) Other factors besides market risk may influence security returns.
D) Beta values for any stock often change over time.
E) The model is difficult to test.
ANSWER
A
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